CABO Should I Buy
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Cable One is not a good buy right now for a beginner long-term investor with $50,000-$100,000 to invest. The stock is in a weak technical trend, analyst sentiment has turned more negative, and the latest quarter showed falling revenue and subscriber losses despite better EPS. The current price is also below important resistance and near support, which makes it a poor entry for someone unwilling to wait for a better setup. Clear opinion: do not buy now.
CABO is in a bearish trend. MACD histogram is negative and expanding, showing downside momentum is strengthening. The moving average structure is bearish with SMA_200 > SMA_20 > SMA_5, which confirms the longer-term downtrend. RSI_6 at 28.4 is near oversold but not a strong reversal signal by itself. Price at 88.65 is below the pivot of 104.21 and only slightly above S1 at 92.06 and near S2 at 84.55, so the stock remains technically fragile.
The stock trend model suggests a possible small rebound over the next month.
Gross margin also fell to 50.03%. Competitive pressure is increasing, ARPU was lighter than expected, and analysts are getting more bearish on cable industry trends. The recent decline in price targets and an Underperform downgrade add to the negative setup.
In Q1 2026, Cable One posted revenue of $352.96 million, down 7.26% year over year, which shows continued top-line pressure. Net income rose to $35.77 million and EPS increased to 5.88, but this was driven more by profitability control than growth. Gross margin slipped to 50.03%. The latest quarter suggests earnings strength, but the underlying business is still shrinking.
Analyst sentiment has weakened recently. TD Cowen cut its price target to $142 from $260 and kept a Hold rating, citing in-line results but weaker Broadband ARPU and ongoing competition. BNP Paribas downgraded CABO to Underperform with an $80 target, saying cable operating trends remain challenged and that Cable One is unlikely to escape industry headwinds. Overall, Wall Street leans cautious to bearish, with the pros seeing shrinking revenue, pressure on ARPU, and limited near-term catalysts.
