Frontier Communications and Windstream Holdings Tell the Tale of the Importance of High Value Stocks

When it comes to stock price, the actual price of the stock can be deceiving. This may sound contradictory, but there are underlying factors that affect the perception of a stock’s value. Frontier Communications has a low stock price but has been sought after by investors. In contrast, many consumers are familiar with Windstream and it exhibits strengths both as a company and as an investment stock. Both stocks are considered to be high yield, but by reading the latest stock movements below you will see that superficial approaches to investing can produce unexpected results.  

RDI Initiates Coverage:

Frontier Communications Corp.                      

Windstream Holdings, Inc.               

Frontier Communications stock was down 4 cents a share on Friday to close at $2.47 a share. The company was one of three that were removed from the Standard and Poor’s stock index on March 10th, as the stock exchanged increased its market cap guidelines. The company provides telecommunication services, including video, telephone, and cable services to urban areas. With dividend yield of nearly 17 percent, the company has been considered a good buy for investors who are seeking high yield investments, although its removal from the S&P 500 has sent a warning signal to investors that while the high yield potential is still there, the stock itself is unstable. Its $2.47 closing price is near its 52 week low of $2.31 a share. With net loss of $0.12 a share, higher than consensus estimates of loss of $0.05 a share and slightly lower than expected revenue of $2.41 billion, the company received couple of numbers of downgrades from different research firms, including Bank of America Merrill lynch downgrading it to “Neutral” from “Buy”. Larger no of analysts still maintains “hold” for the company. Over the past 30 days the stock has given up 82 cents a share.

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Windstream Holdings bumped up 5 cents a share on Friday to close at $6.28. Investment ratings firms have a variety of positions on the stock, with one firm raising its recommendation on Windstream as a “buy”. The company is beginning to recover from its 52 week low of $6.65 a share. Less than a month ago, Windstream completed merger with Earthlink to expand its network reach. The company’s product offerings include broadband, security solutions, voice, and digital TV channels to consumers. It is a member of the Fortune 500 list of most successful companies. Windstream has reported a net loss of $383.5 million or $4.11 a share on revenue of $5.4 billion for the year 2016 as compared to profit of $27.4 million or $0.24 a share on revenue of $5.77 billion for the year 2015.

Access RDI’s Windstream Holdings Research Report at:

Our Actionable Research on Frontier Communications Corp. (NASDAQ:FTR) and Windstream Holdings, Inc. (NASDAQ:WIN) can be downloaded free of charge at Research Driven Investing.

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Disclaimer: This article is written by an independent contributor of and reviewed by Hemal K. Gandhi, a CFA® charter holder. is neither a registered broker dealer nor a registered investment advisor. For more information please read our full disclaimer at


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