Stock Buy: Rogers Communications

Rogers Communications Inc. (RCI: 33.34 +0.52 +1.58%) continues set new 52-week highs, yet remains a good value at under 14 times forward earnings.

Company Description

Rogers Communications is one Canada's largest providers of cable television, high-speed Internet, wireless communication and other related services.

Wireless Leads to Earnings Surprise

On Feb 17 Rogers reported quarterly results that included a 14% jump in operating profits. Revenue eclipsed $2 billion as the wireless data revenues gained 45%.

Earnings per share came in at 61 cents, 9 cents ahead of the Zacks Consensus Estimates. This was good enough for the company's fourth consecutive earnings surprise.

Well Positioned

In the same press release Rogers' President and CEO said, we are extremely well positioned with a terrific asset mix and strong customer demand for our products and services. The dividend increase and the renewal of our share buyback program for 2010 underline our continued confidence in the strategic position of the Company."

The buyback he is referring to is for up to $1.5 billion worth of stock, or just over 9% of the outstanding shares.

Analysts React

While the year-over-year growth is not there, rising just 7% over the next 2 years, the estimates are climbing. Full-year projections for 2010 are now $2.46, up from $2.32. Next year's consensus is $2.68, up from $2.45.

The earnings surprise and upward revisions were enough to boost RCI to a Zacks #1 Ranked stock.

The Chart

Shares of RCI are a bit volatile, but the overall trend remains upward. Rogers is trading just under its newly set 52-week high.