Options Traders May Want to Skip Over This Broadband Stock

CABO is down 18% this year

facebook twitter linkedin

Cable One, Inc. (NYSE:CABO) is an American broadband communications provider. CABO serves more than 1.1 million residential and business customers in 24 states through Sparklight and the associated Cable One brands. Cable One provide residential customers and businesses with connectivity and entertainment services, including Gigabit speeds, advanced WiFi, and video. At last check the equity was trading flat at $1,698.42.

On Oct. 21, Cable One announced that the senior leadership team will be hosting a conference call to discuss its third-quarter earnings on Thursday, November 4. The broadband company will also issue a press release reporting its results after the markets close on Thursday. Analysts have Cable One’s earnings coming in at $12.64 per share for the upcoming Q3 earnings report.

Cable One stock has decreased about 12% year-over-year and has shed 27% since peaking at a record $2,326.80 last December. Additionally, shares of CABO have fallen 18% year-to-date and remain up just 1% from their May 52-week low of $1,674.35. Moreover, Cable One offers a forward dividend of $11.00 and a dividend yield of 0.64%.

From a fundamental point of view, Cable One stock’s valuation is still on the higher end, despite CABO’s price dropping significantly over the past year and currently hovering near its 52-week low. Cable One stock is beginning to reach a more reasonable value, with the broadband company producing consistent top and bottom-line growth over the past few years.  

However, Cable One has a relatively weak balance sheet, with $449 million in cash and $4.01 billion in total debt. In addition, CABO doesn’t offer the greatest price-sales ratio at 7.46, further adding to the argument that Cable One stock is overvalued. Overall, investors are likely better suited waiting for a better entry point.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners