The Zacks Analyst Blog Highlights Charter Communications, Fox, Comcast and Warner Bros. Discovery

For Immediate ReleaseChicago, IL – January 30, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Charter Communications CHTR, Fox FOXA, Comcast CMCSA and Warner Bros. Discovery WBD.Here are highlights from Wednesday’s Analyst Blog:3 Media Stocks Poised to Beat Estimates This Earnings SeasonThis earnings season, media companies' results are expected to mirror consumers' growing appetite for over-the-top content consumption. The rise of streaming platforms has led audiences to abandon traditional cable and satellite TV subscriptions in favor of on-demand viewing.The industry faces significant headwinds from declining broadcast television ratings and reduced demand for theatrical content sales. Advertisers' reluctant spending amid inflation and higher interest rate concerns have compounded these challenges. The accelerating cord-cutting trend and stiff competition from subscription video-on-demand and virtual Multichannel Video Programming Distributor services have disrupted traditional business models.However, media giants have been benefiting from the surging demand for high-speed broadband. Strong sales of WiFi devices and wireless Internet services have provided a boost.Industry players leveraging diversified content offerings tailored for digital platforms are better positioned. Original programming, regional content, short-form videos suited for mobile devices, improved Internet speeds and penetration rates, and technological innovation favor adaptable media companies. As ad revenues remain muted, profit protection through cost management and tech integration has taken on strategic importance.Media conglomerates like Charter Communications, Fox and Comcast are expected to report soon and are anticipated to come up with resilient top-line results driven by these dynamics.Capitalizing on Media's Digital Pivot: A Lucrative ProspectInvesting in media companies spearheading digital transformation through original content production and capitalizing on surging high-speed Internet demand presents an attractive opportunity. The convergence of these trends allows forward-thinking media firms to unlock new revenue streams, expand globally and successfully navigate the rapidly evolving media landscape.The industry pivot to digital is fueling a boom in exclusive, high-quality original programming to meet discerning audience tastes. Media giants like Warner Bros. Discovery are investing heavily in marquee content, both reacting to shifting consumption patterns and proactively differentiating themselves in an overcrowded digital space. Successful original shows drive subscriber stickiness and open additional revenue opportunities through lucrative licensing and syndication deals.Media companies are also experiencing a paradigm shift in monetization away from traditional TV toward diverse digital ad revenue sources across websites and platforms. The data-rich digital realm enables targeted advertising, becoming a cornerstone revenue diversification strategy.The consumer preference for digital/subscription services over linear pay-TV has compelled media firms to evolve business models, such as offering attractively priced "skinny bundles" to capture cost-conscious viewers.Surging broadband Internet demand catalyzes growth for industry leaders like Rogers Communications and Charter. Faster speeds foster consumer appetite for high-quality streaming video and binge-watching. The strengthening global broadband ecosystem, coupled with smart TV proliferation, creates a fertile environment for media companies delivering engaging digital experiences to flourish as consumers crave seamless, premium content.Continuous investment in technology, content innovation and strategic partnerships separate the media winners, capitalizing on this generational digital shift.How to Make the Right Pick?With the existence of a number of industry players, finding media stocks that have the potential to beat earnings estimates can be daunting. Our proprietary methodology, however, makes it fairly simple.You could narrow down your choices by looking at stocks that have the perfect combination of two key elements: a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.Earnings ESP is our proprietary methodology for determining stocks that have maximum chances of beating estimates at their next earnings announcement. It is the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate.Our research shows that for stocks with this favorable mix of ingredients, the odds of an earnings surprise are as high as 70%.Best BetsGiven below are three media stocks that have the favorable combination to beat on earnings this reporting cycle:Charter Communications is slated to report its fourth-quarter 2024 results on Jan. 31. The company currently has an Earnings ESP of +2.98% and carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.Find the latest earnings estimates and surprises on Zacks Earnings Calendar.Charter Communications' strategic investments in network infrastructure and fiber-optic construction, particularly through Spectrum's expanding network, are likely to have contributed to CHTR's prospects in the to-be-reported quarter. CHTR's total residential revenues are likely to have reflected a steady momentum in its mobile service segment, partly offset by lower voice and video revenues.Continuous enhancements in the company's Spectrum One network have been a major growth driver. In the quarter under review, CHTR announced the launch of Spectrum Ready for multifamily properties or bulk single families to enable instant activation of the Internet as well as Wi-Fi services in case of relocation. The service is available in 41 states. Charter Spectrum announced its new distribution agreement with Warner Bros. Discovery. Spectrum TV Select customers can access Max with ads at no extra cost, offering content from HBO, Warner Bros., DC and more.In the to-be-reported quarter, Charter Spectrum launched gigabit broadband for 575+ homes and businesses in Norway and South Carolina through a $2.2 million project supported by a $940,500 grant. A free public WiFi access point will be available for one year. Charter Spectrum launched Gigabit Internet, Mobile, TV and Voice services to more than 2,000 homes and businesses in Coshocton County, OH, as part of its $9 billion rural broadband expansion initiative.The Zacks Consensus Estimate for earnings has moved north by 1% to $9.54 per share in the past 30 days.Fox is scheduled to report its second-quarter fiscal 2025 results on Feb. 4. The company currently has an Earnings ESP of +5.86% and carries a Zacks Rank #2.FOX Sports' growing reputation as the premier destination for live sporting events and sports commentary is a key catalyst. Notable live programs include Thursday night and Sunday National Football League (NFL), the Major League Baseball All-Star Game, the World Series and other marquee events, including the Super Bowl and FIFA World Cup. FOXA's Tubi's performance is expected to have driven the top line in the second quarter of fiscal 2025 by enhancing user rate. Tubi's viewership metrics and content library are expected to bode well for investors.The FOX Network primetime lineup, which includes The Masked Singer, is popular among 18 to 49-year-old audiences, an important target group for advertisers. Expanding viewership within this audience group is expected to have attracted more advertisers, thereby driving advertising revenues in the to-be-reported quarter. In the fiscal first quarter, advertising revenues increased 10.75% year over year to $1.33 billion, primarily due to higher political advertising revenues at the FOX Television Stations and the strong performance of Tubi.The Zacks Consensus Estimate for earnings has remained steady at 64 cents per share in the past 30 days.Comcast is slated to report its fourth-quarter 2024 results on Jan. 30. The company currently has an Earnings ESP of +2.98% and carries a Zacks Rank #3.Comcast has been actively pursuing strategies to diversify its offerings and maintain its market position. In the quarter under review, CMCSA announced the launch of an early preview of the Multiview experience on X1 for sports fans that allows users to toggle between channels. The company also announced the availability of the Crunchyroll app on Xfinity X1, Flex, Xumo Stream Box and Xumo TVs, offering more than 25,000 hours of anime.Comcast announced its multi-year deals with Warner Bros. Discovery to bring WBD's TV networks, HBO and streaming services like Max and Discovery+ to Xfinity, Sky UK and NOW TV customers. The launch of NOW TV Latino, a new service targeting Spanish-speaking audiences, which is priced at $10 per month with no contract or additional fees, is expected to have gained popularity and adoption in the to-be-reported quarter.The company's streaming platform, Peacock, is expected to have continued its growth trajectory. The rising popularity of Xfinity StreamSaver, a streaming bundle of Peacock, Netflix and Apple TV+ is likely to have been a game changer. With its diverse content offerings, including popular TV shows, sports programming and original series, Peacock is likely to have attracted more subscribers and generated increased revenues.CMCSA's business services segment is likely to have shown resilience, potentially benefiting from an expanding client base drawn to the company's advanced network infrastructure. New and cost-effective mobile plans by Comcast Business are expected to have aided growth in new small business customers.The Zacks Consensus Estimate for earnings has remained steady at 88 cents per share in the past 30 days.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.com                                      https://www.zacks.com                                                   Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Comcast Corporation (CMCSA): Free Stock Analysis Report Charter Communications, Inc. (CHTR): Free Stock Analysis Report Warner Bros. Discovery, Inc. (WBD): Free Stock Analysis Report Fox Corporation (FOXA): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks