(SJR) - Shaw Communications recorded customer gains across all businesses in the second quarter

Shaw Communications Inc. has seen its earnings estimates increase significantly over the past 30 days. This year's estimates have jumped 19.5%, while next year's numbers have risen 9.7% over the same time period. The stock is trading at 27.8x next year's estimates of $1.02 per share, below the long-term growth rate of 31.57%, giving the stock a PEG ratio of 0.88. Full Analysis Shaw Communications Inc. (SJR) is the largest provider of communication services in Canada. Its business includes providing broadband cable television, Digital Phone and Internet, satellite direct-to-home (DTH), and satellite distribution services to over three million customers. The company operates through three major divisions: Cable, DTH, and Satellite Services. An increase in subscribers across all divisions, launch of the Voice-over-Internet Protocol (VoIP), and return of value to shareholders make the stock attractive. Shaw Communications recorded customer gains across all businesses in the second quarter with 6,838 customer additions in basic cable; 18,594 in digital cable; 36,296 in Internet; 28,018 for digital phone; and 6,843 in DTH. Greater focus on customer service and reduction in churn rates will help the company sustain this trend in coming quarters. Improved marketing efforts; initiatives like same day, next day service for customers; and new offerings, such as VoIP, are likely to expand its client base further. The company said last Friday its fiscal third-quarter net income surged, thanks to one-time gains as well as higher revenue. For the quarter ended May 31, the company earned 126.4 million Canadian dollars, ($114.7) or 58 cents Canadian per share, up from 32.8 million Canadian dollars, or 14 cents per share, a year ago. "We're expanding our digital phone footprint and growing our customer base, improving service levels, and enhancing our product offerings to drive strong revenue and operating income growth," said Jim Shaw, Chief Executive, in a statement. Earnings estimates have increased significantly over the past 30 days. This year's estimates have jumped 19.5%, while next year's numbers have risen 9.7% over the same time period. The stock is trading at 27.8x next year's estimates of $1.02 per share, below the long-term growth rate of 31.57%, giving the stock a PEG ratio of 0.88. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. Blog Home