Valued at a market cap of $136 billion, Comcast Corporation (CMCSA) is a global media and technology company offering residential and business broadband and wireless connectivity services along with NBCUniversal national and regional cable networks and streaming platforms. The Philadelphia, Pennsylvania-based company operates through five segments: Residential Connectivity & Platforms; Business Services Connectivity; Media; Studios; and Theme Parks.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Comcast fits this criterion perfectly. The company is the third-largest broadcasting and cable television company in terms of revenue.
The multinational mass media corporation declined 20.6% from its 52-week high of $45.31. Over the past three months, CMCSA’s shares have dropped 16.1%, underperforming the Communication Services Select Sector SPDR ETF Fund’s (XLC) marginal rise.
In the long term, CMCSA has fallen 4.1% YTD, trailing XLC’s 4.3% gain. Additionally, shares of Comcast have dipped 15.9% over the past 52 weeks, while XLC has climbed nearly 26.2% in the same period.
CMCSA has been trading below its 50-day and 200-day moving averages since December last year.
Despite beating Wall Street expectations with Q4 2024 adjusted EPS of $0.96 and revenue of $31.9 billion, CMCSA shares dipped 11% on Jan. 30. The company reported a larger-than-expected decline of 139,000 broadband subscribers, reflecting mounting competition from mobile providers. Additionally, Peacock’s subscriber base stagnated at 36 million, raising concerns about its ability to compete in the saturated streaming market. Finally, ongoing cord-cutting trends led to a significant loss of 311,000 TV customers, further pressuring Comcast’s traditional cable business.
Nevertheless, in comparison, its rival Cable One, Inc. (CABO) has underperformed CMCSA, with shares declining 47.1% over the last 52 weeks and falling 33.1% YTD.
Despite CMCSA’s weak price action, analysts are moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 30 analysts covering the stock, and as of writing, Comcast is trading below the mean price target of $43.02.
