Cable Stocks Caught Between Streaming Wars and Broadband Gold Rush: 3 Names Worth Tracking

The cable television industry faces a critical inflection point. While traditional pay-TV continues its structural decline, cable stocks are quietly pivoting toward high-margin broadband and emerging services. Here’s what’s actually moving the needle for major players.

The Real Story: Broadband, Not TV

Forget cord-cutting headlines—cable stocks are making money where it matters: internet connectivity. Comcast, Charter Communications, and Cable One are all doubling down on broadband infrastructure as consumer preferences shift away from linear TV toward streaming platforms.

The numbers tell the tale. Work-from-home adoption and online learning have created persistent demand for high-speed internet that shows no signs of slowing. Cable companies are leveraging their existing network infrastructure—a massive competitive moat competitors can’t replicate overnight. Meanwhile, skinny bundles and original content strategies are helping these cable stocks retain video subscribers at lower churn rates.

But here’s the catch: the industry’s earnings outlook has deteriorated. Since August 30, 2024, analyst consensus on 2025 earnings estimates for cable stocks fell 2.8%, reflecting persistent headwinds from advertising weakness and programming cost inflation.

Valuation: Cable Stocks Trading at Historic Discounts

The cable television industry carries a Zacks Industry Rank of #186—bottom 24% territory. Over the past 12 months, cable stocks declined 15.9% while the S&P 500 gained 18.1%, and the Consumer Discretionary sector rose 28.2%.

Yet valuations look attractive on a forward basis. Cable stocks currently trade at 7.44X trailing 12-month EV/EBITDA, compared to 17.75X for the S&P 500 and 11.69X for the broader sector. This 50%+ discount to market multiples suggests either value opportunity or structural decline—the investment question of 2025.

Three Cable Stocks in Focus

Cable One (CABO): The Turnaround Play

Cable One presents the most interesting risk/reward after a brutal year—shares down 55.4% year-to-date. The Q2 $438 million net loss stemmed from non-cash impairment charges, masking solid operational momentum underneath.

Revenue trends are improving sequentially. Residential broadband revenues climbed 1.9% quarter-over-quarter, driven by a $2.39 ARPU increase to industry-leading levels. The company is executing disciplined capital allocation: $70.8 million in debt repaid during Q2 and a fortress liquidity position of $1.02 billion.

More compelling: strategic initiatives like billing system migration completion will generate $15 million in annual cost savings starting late 2025. New value-added services and a mobile pilot program are designed to expand customer lifetime value. CABO trades at a Zacks Rank #2 (Buy). The consensus estimate for Q3 2025 earnings moved north 6.7% to $9.25 per share over the past 30 days.

Comcast (CMCSA): Streaming and Theme Parks Driving Value

Comcast demonstrated operational resilience in Q2 despite industry headwinds. The company delivered 3% adjusted EPS growth and generated robust $4.5 billion in free cash flow.

The wireless business is the quiet winner—record quarterly additions of 378,000 lines showcase convergence advantages. Theme parks revenues surged 19% on Epic Universe’s successful launch, while Peacock improved profitability with 18% revenue growth and narrowed losses.

The strategic Versant spinoff (expected by year-end) will unlock value by separating legacy cable assets worth $7 billion annually, freeing capital for higher-growth streaming and connectivity businesses. Comcast’s broadband subscriber losses remain a concern, but management’s go-to-market pivot shows early promise. CMCSA carries a Zacks Rank #3 (Hold) rating. The consensus estimate for Q3 2025 earnings declined 4.3% to $1.10 per share over 30 days. Year-to-date share decline: 9.5%.

Charter Communications (CHTR): Scale Through Acquisition

Charter faced Q2 headwinds, with the stock down 22.5% year-to-date and 18% intra-quarter after losing 117,000 internet customers. But the transformative $34.5 billion Cox acquisition—approved by 99% of shareholders—reshapes the competitive landscape.

The combined entity becomes America’s largest cable operator with $500 million in projected annual synergies. Meanwhile, Charter’s mobile momentum remains robust: 500,000 net additions and 24.9% revenue growth, strengthened by a strategic T-Mobile partnership for business services launching in 2026.

Infrastructure investments, improving video trends, and high-growth wireless diversification provide compelling upside for patient investors. CHTR is a Zacks Rank #3 company. The consensus earnings mark for Q3 2025 moved north 0.1% to $9.61 per share.

The Bottom Line on Cable Stocks

Cable stocks trade at multi-year valuation discounts while reinventing their business models around broadband and convergence services. The industry’s earnings headwinds are real, but the valuation risk/reward at current levels may justify selective exposure for contrarian investors monitoring execution on broadband growth and wireless expansion.