Philadelphia-based Comcast Corporation (CMCSA) is a global media and technology company operating through Residential Connectivity & Platforms, Business Services Connectivity, Media, Studios, and Theme Parks segments. Valued at $151.22 billion by market cap, it delivers broadband, wireless, and video through Xfinity, Comcast Business, and Sky Brands; create, distribute, and stream entertainment, sports, and news through Universal Filmed Entertainment Group, Universal Studio Group, Sky Studios, the NBC and Telemundo broadcast networks, Peacock, and Sky Sports; and provide memorable experiences at Universal Parks and Resorts in the U.S. and Asia.
Shares of this large-cap telecom and media giant have underperformed the broader market considerably over the past year. CMCSA has declined 2.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 26.2%. In 2024 alone, CMCSA stock is down 12.1%, while the SPX is up 11.2% on a YTD basis.
Narrowing the focus, CMCSA’s underperformance looks even more pronounced compared to the Telecom Service ETF Vanguard (VOX). The exchange-traded fund has gained about 32.1% over the past year. Moreover, the ETF’s 13.9% gains on a YTD basis outshine the stock's loss over the same time frame.
CMCSA’s weak price action relative to the broader indexes over the past year can be attributed to its slowing customer growth during the first quarter. The company lost 65,000 customers during the quarter. The company beat Wall Street’s revenue and EPS estimates in its Q1 results reported on Apr. 25. The stock lost 5.8% on the day of its earnings release.
For the current fiscal year, ending in December, analysts expect CMCSA to report an EPS growth of 5.8% to $4.21 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 29 analysts covering CMCSA stock, the consensus rating is a “Moderate Buy.” That’s based on 16 “Strong Buy” ratings, one “Moderate Buy,” and 12 “Holds.”
This configuration is slightly more bullish than three months ago, with 15 suggesting a “Strong Buy.”
On April 29, Citigroup (C) analyst Michael Rollins maintained a "Strong Buy" rating on CMCSA stock and lowered the price target from $53 to $48, citing challenges in key areas affecting future growth.
The mean price target of $48.25 represents a 25.2% premium to CMCSA’s current price levels. The Street-high price target of $58 suggests an ambitious upside potential of 50.5%.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
