Shares of Altice USA Inc. (NYSE: ATUS) soared 6.72% in pre-market trading on Monday, following the release of its mixed third-quarter 2024 earnings report and analysts' positive outlook on the stock as a promising "penny stock" play.
In its Q3 results, Altice USA reported a 3.9% year-over-year decline in revenue to $2.23 billion, missing analysts' expectations. The company also posted a net loss of $43 million, compared to a profit of $66.8 million in the same period last year. However, there were some bright spots, including a 47,000 increase in fiber net additions, with 73% driven by existing customer migrations. The company's fiber network penetration reached 16.6%, up from 10.8% a year ago.
Despite the mixed earnings, analysts remain bullish on Altice USA, positioning it as one of the "best NYSE penny stocks to buy right now". The optimism stems from the company's efforts to expand its fiber network, with plans to reach 3 million fiber connections by year-end and add more than 175,000 new passings in 2024. Additionally, Altice USA is actively managing its debt maturity profile and focusing on operational improvements and financial discipline.
Analysts cite the improving macroeconomic conditions, the focus on profitable small-cap companies, and Altice USA's exposure to emerging technologies as factors contributing to the positive outlook for the stock. With its attractive valuation and narrow expected earnings growth gap compared to large-cap companies, Altice USA is seen as a compelling investment opportunity in the penny stock space.
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