Valued at a market cap of $162.8 billion, Philadelphia, Pennsylvania-based Comcast Corporation (CMCSA) is a global media and technology company. It operates through key segments including Residential Connectivity & Platforms, Business Services Connectivity, Media, Studios, and Theme Parks.
Companies valued at $10 billion or more are generally considered "large-cap" stocks, and Comcast fits this criterion perfectly. Comcast delivers broadband, wireless, and video services through brands like Xfinity, Sky, and Comcast Business while offering entertainment through NBCUniversal, Sky Studios, Peacock, and Universal Parks. Its diverse portfolio spans connectivity, content creation, and memorable experiences worldwide.
Comcast's stock has fallen 9.2% from its 52-week high of $47.11, achieved in the beginning of this year. 19. The cable provider has gained 7.5% over the past three months, lagging behind the 9.8% rise in the broader Dow Jones Industrials Average ($DOWI).
In the longer term, Comcast has experienced a decline of 2.4% on a YTD basis, underperforming DOWI's 18.8% increase. Additionally, CMCSA's shares have risen 2.8% over the past 52 weeks, while the DOWI posted a 23.9% return during the same period.
Yet, Comcast has shown a bullish price trend, trading above its 50-day and 200-day moving averages since September.
Comcast shares rose 3.4% on Oct. 31 due to its better-than-expected Q3 2024 results, with adjusted earnings of $1.12 per share and revenue of $32.1 billion. Growth was fueled by a 36.5% increase in Media revenues, driven by higher domestic distribution and advertising, and an 82% jump in Peacock revenues as subscribers grew 29% year-over-year. Additionally, the company demonstrated strong financial discipline, generating $7 billion in operating cash flow and returning $3.2 billion to shareholders through dividends and share buybacks. However, the stock fell marginally on Dec. 3 due to investor concerns about the near-term costs and risks of migrating its 5G core network to Amazon Web Services (AWS). Despite potential long-term benefits, uncertainty over immediate cost savings and execution dampened sentiment.
Highlighting the contrast in performance, rival Charter Communications, Inc. (CHTR) has outperformed Comcast, with CHTR experiencing a 10.9% increase over the past 52 weeks and a nearly 4% rise YTD.
Despite CMCSA’s weak price action, analysts are moderately optimistic about its prospects. The stock has a consensus “Moderate Buy” rating overall from the 29 analysts in coverage, and it is currently trading below the mean price target of $48.40.
