(WOW) WideOpenWest - Ratings and Ratios

WideOpenWest Inc (NYSE:WOW) is a US-based telecommunications company that delivers high-speed data, cable television, and digital telephony services to residential and business customers. The companys comprehensive service portfolio includes basic and digital cable services, as well as advanced offerings like WOW tv+, which integrates traditional cable video with cloud DVR functionality, voice remote control via Google Assistant, and seamless access to various streaming services and apps through the Google Play Store.

In addition to its consumer-focused services, WideOpenWest provides a range of business telephony and data services, including fiber network infrastructure, metro Ethernet, session-initiated protocol trunking, colocation infrastructure, cloud computing, managed backup, and recovery services. This diversified service offering enables the company to cater to the complex needs of business customers, positioning it for potential growth in the enterprise segment.

From a technical analysis perspective, the stocks recent price action indicates a relatively stable trend, with the 20-day simple moving average (SMA20) at $4.34 and the current price at $4.37. The average true range (ATR) of 0.23 represents a 5.36% volatility, suggesting moderate price fluctuations. Considering the SMA50 and SMA200 levels, the stock is currently trading below its longer-term averages, potentially indicating a downtrend.

Fundamentally, WideOpenWests market capitalization stands at $380.22 million, with a forward price-to-earnings ratio of 29.59, suggesting that the stock may be relatively expensive compared to its expected earnings growth. The companys return on equity (RoE) is negative, indicating that it has not been generating profits for its shareholders. However, this metric should be considered in the context of the companys growth stage and industry dynamics.

Forecast: Based on the technical and fundamental data, a potential trading opportunity may arise if the stock price breaks above its SMA50 level of $4.55, potentially signaling a reversal of the downtrend. Conversely, a decline below the SMA20 level of $4.34 could indicate further downside. From a fundamental perspective, the companys growth prospects will depend on its ability to expand its customer base, improve its profitability, and navigate the competitive landscape of the US telecommunications market. If WideOpenWest can achieve these objectives, its stock price may potentially appreciate, with a possible target price of $5.50 in the next 6-12 months, representing a 25% upside from current levels.