Charter Communications merges with Cox Communications for $21.9 billion

In the United States on May 16, 2025, Charter Communications announced its agreement to merge with privately held Cox Communications, with the deal valued at $21.9 billion. This merger is notable as it involves two of the largest providers in the cable and broadband market, thereby potentially reshaping the telecommunications landscape in the country. The agreement comes amid recent shifts in stock performance and market dynamics influenced by political and economic factors, including trade policies initiated by President Donald Trump. Such policies have had a palpable impact on market volatility, with the S & P 500 index surging more than 20% since it reached its low on April 7 due to escalating trade concerns and tariffs introduced earlier in April, which were subsequently reversed or postponed. Bank of America has identified several overlooked stocks in this turbulent market climate that have been categorized as under-owned but carry potential for significant growth. According to their screening criteria, these stocks are characterized by low fund ownership, overweight allocation by the funds that do own them, and a high 'triple momentum rank'. This rank encompasses factors of earnings, price, and news momentum to gauge a stock's current standing. As a result, companies like Charter and Howmet Aerospace, which have demonstrated positive performance trajectories amidst the economic changes, have garnered attention from analysts and investors alike. Charter Communications, with a fund ownership of only 17%, has seen its shares rise 20% year-to-date. This growth partly stems from the anticipation surrounding the merger with Cox Communications, suggesting that the market views this collaboration as a catalyst for future expansion. Meanwhile, Howmet Aerospace, known for supplying parts to Boeing, has also performed well, with stock growth near 54% year to date, yet has only a 23% fund ownership. Toast, another company highlighted by Bank of America, has been similarly overlooked with only 18% fund ownership, gathering less attention compared to more prominently held stocks. The analysts at Bank of America, spearheaded by Nigel Tupper, emphasize the importance of discerning between trades with positive catalysts and those that may not hold the same potential for growth. They suggest that particular focus should be given to under-owned stocks that demonstrate indicators of a positive momentum, thus providing investment opportunities in the shifting market scenario. The financial landscape remains one that requires careful analysis and strategy as investors continue to navigate through changing economic indicators and corporate moves.