Investors are abuzz with excitement over the potential partnership between DISH Network and Amazon. This collaboration has led to a remarkable surge in DISH Network Corporation’s stock price, with shares soaring by as much as 20% on Thursday.
If the discussions between DISH and Amazon materialize, it could open doors for DISH to enter the competitive realm of major cellphone carriers, such as AT&T Inc. (NYSE: T), Verizon Communications Inc. (NYSE: VZ), and T-Mobile US, Inc. (NASDAQ: TMUS). While neither DISH Network nor Amazon has officially confirmed these talks, a partnership of this nature would mark a significant milestone for DISH as it strives to expand its presence in the wireless business.
On Thursday, DISH stock experienced a noteworthy uptick compared to its previous closing day. Starting the day at $7.30, the stock opened higher than the previous day’s close of $6.22. Throughout the day, the stock traded within the range of $6.64 and $7.43, with an impressive volume of 1,073,293 shares traded. Currently, DISH boasts a market cap of $3.6 billion.
However, DISH has experienced a decline in earnings growth. Last year, the earnings growth reached -4.87%, and this year it has further declined to -69.82%. Looking ahead, the forecast for the next five years indicates an anticipated earnings growth of -34.66%. Similarly, DISH witnessed negative revenue growth last year, with a decline of 6.72%.
Despite these challenges, DISH’s P/E ratio remains remarkably low at 2.0, suggesting that the stock is undervalued in the market. Additionally, the price/sales ratio stands at 0.54, and the price/book ratio at 0.20, both of which are below the industry average.
When compared to other stocks in the same industry, DISH’s performance outshone Cable One, Inc. (NYSE: CABO), which experienced a decline of -3.46%. Similarly, Liberty Global PLC struggled, with LBTYA and LBTYK declining by -3.70% and -3.26% respectively.