Charter Communications (CHTR, $49.59) Earnings Expectations on Friday, April 28: A Technical Analysis
Charter Communications (NASDAQ: CHTR), one of the largest cable and telecommunications companies in the United States, is set to announce its quarterly earnings results on Friday, April 28. As investors eagerly await the release of the company's financial performance, technical analysts have observed some key indicators that could shed light on the stock's near-term trajectory. One such indicator, the Moving Average Convergence Divergence Histogram (MACD), recently turned negative for CHTR, which could be a bearish signal for the stock. In this article, we'll dive into the technical analysis of Charter Communications and examine the potential implications of the MACD's bearish signal.
MACD Histogram Turns Negative:
On April 20, 2023, CHTR's MACD Histogram turned negative, a technical indicator that suggests potential weakness in the stock's price. The MACD is a popular momentum indicator that tracks the relationship between two moving averages – the 12-day exponential moving average (EMA) and the 26-day EMA. When the MACD Histogram turns negative, it indicates that the 12-day EMA has crossed below the 26-day EMA, signaling a potential downward trend.
To better understand the significance of the MACD's bearish signal for CHTR, we can turn to Tickeron's A.I.dvisor, which analyzed 45 instances in which the indicator turned negative. In 27 of those cases, the stock moved lower in the days that followed, translating to a 60% probability of a downward move. While this historical analysis does not guarantee that CHTR's stock price will decline following the negative MACD signal, it does provide investors with insight into the potential odds of such a move.
As we approach Charter Communications' earnings announcement, it's essential to keep in mind that the MACD is just one technical indicator among many that can help investors gauge the stock's momentum. Other factors, such as company fundamentals, industry trends, and broader market conditions, should also be considered when evaluating the stock's potential direction.
For instance, investors should pay attention to Charter Communications' revenue growth, subscriber additions, and the impact of the ongoing shift towards streaming services on its traditional cable business. Additionally, the competitive landscape in the telecommunications industry and any regulatory developments could also play a role in shaping CHTR's future performance.
As Charter Communications prepares to release its earnings results on April 28, the recent bearish signal from the MACD Histogram suggests that the stock could be facing near-term headwinds. According to Tickeron's A.I.dvisor, there is a 60% chance that the stock will move lower based on historical instances. However, investors should not solely rely on this technical indicator and should consider other factors, including the company's fundamentals and industry trends, when making their investment decisions.
CHTR in downward trend: price dove below 50-day moving average on October 28, 2024
CHTR moved below its 50-day moving average on October 28, 2024 date and that indicates a change from an upward trend to a downward trend. In of 32 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The Momentum Indicator moved below the 0 level on October 28, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on CHTR as a result. In of 82 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CHTR declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for CHTR entered a downward trend on October 04, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where CHTR's RSI Oscillator exited the oversold zone, of 34 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for CHTR just turned positive on October 22, 2024. Looking at past instances where CHTR's MACD turned positive, the stock continued to rise in of 45 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CHTR advanced for three days, in of 337 cases, the price rose further within the following month. The odds of a continued upward trend are .
CHTR may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. CHTR’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.698) is normal, around the industry mean (4.726). P/E Ratio (9.468) is within average values for comparable stocks, (113.894). Projected Growth (PEG Ratio) (0.287) is also within normal values, averaging (8.093). CHTR has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.059). P/S Ratio (0.790) is also within normal values, averaging (13.458).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. CHTR’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 80, placing this stock worse than average.
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General Information
a provider of broadband communications services
Industry WirelessTelecommunications