Comcast Corporation (CMCSA) has gained solid market share through various strategic collaborations and operational advancements. In addition, the Company’s solid dividend growth track record demonstrates management’s growing confidence in CMCSA’s prospects. In such a situation, we feel that this stock can be a good buy right now. read on.
Comcast Corporation (CMCSA) is a global media and technology company that connects people with important moments. With 57 million customer relationships in the United States and Europe, it primarily focuses on broadband, aggregation, and streaming. It provides broadband, wireless and video services through the Xfinity, Comcast Business and Sky brands.
CMCSA will pay a $0.27 quarterly cash dividend on August 26, 2022. The stock pays a dividend per share of $1.08 annually, which translates to a 2.8% yield. The company’s dividend has grown at the rate of 12% in the last five years. CMCSA has increased its dividend for two consecutive years.
This month, CMCSA announced a strategic partnership with Fortinet (ftnt), a global leader in comprehensive, integrated and automated cyber security solutions, to provide enterprises with a new set of Secure Access Service Edge (SASE) and Security Service Edge (SSE) solutions, so that enterprises can be accessed via cloud-delivered To help protect your distributed workforce. Approach to security policy enforcement.
This collaboration broadens CMCSA’s managed services expertise, while giving enterprises greater flexibility in selecting the cloud architecture and vendor mix that is best for them.
Here’s what could shape CMCSA’s performance in the near future:
During the second quarter ended March 26, 2022, CMCSA revenue increased 5.1% year-over-year to $30.02 billion. Its adjusted EBITDA rose 10.1% from a year-ago value to $9.83 billion. The company’s net income stood at $3.39 billion. Its adjusted EPS rose 20.2% to $1.01 from a year-ago price.
trailing-12-months of CMCSA gross profit margin The industry average of 67.3% is 32.7% higher than 50.7%. In addition, its ROC, net income margin and ROA are 102.6%, 149.3% and 126.1% higher than their respective industry averages. In addition, its EBITDA margin of 29.8% is 60.3% higher than the industry average of 18.6%.
In terms of trailing 12-month non-GAAP P/E, the stock is currently trading at 10.63x, which is 41.1% lower than the industry average of 18.05x. In addition, its previous-12-month EV/EBIT of 11.37x is 28.1% lower than the industry average of 15.81x. In addition, CMCSA’s forward price/cash flow of 6.05x is 32.8% lower than the industry average of 9.01x.
impressive growth prospects
The Street expects CMCSA’s revenue and EPS to grow 4.6% and 11.5% year-over-year in fiscal 2022 to $121.76 billion and $3.6. In addition, its EPS is expected to grow at 10.2% per annum over the next five years.
Consensus ratings and price targets indicate potential upside
Of the 22 Wall Street analysts who rated the CMCSA, 12 rated it as buy and seven rated it as hold. The 12-Month Average Price Target of $46.98 indicates a 21.7% Potential Upside, The price target is from the $33.00 low to $60.00 high.
Power rating shows solid prospects
CMCSA has an overall grade of B, which is equivalent to our proprietary Buy Rating power rating Arrangement The POWR rating is calculated considering 118 different factors, each factor weighted to an optimum degree.
Our proprietary rating system also evaluates each stock based on eight different categories. CMCSA has a B grade for quality and consistency. Its strong profitability is in line with the quality grade. The stock beta of 0.91 is in sync with the stability grade.
Nine de-rated . out of Entertainment – TV and Internet Providers Industry stock, CMCSA is ranked #1.
In addition to what I said above, we have graded the CMCSA for Sentiment, Growth, Value and Momentum. Get All CMCSA Ratings Here,
The company posted solid revenue and earnings growth in the last quarter. In addition, CMCSA’s strategic association has increased its market reach.
Moreover, with its discounted valuation and favorable analyst rating, the stock is set to climb in the near term. Therefore, we believe that this stock can be a good buy right now.
How does Comcast Corporation (CMCSA) stack up against its peers?
The CMCSA has an overall POWR rating of B, which is equivalent to a Buy rating. View this other stock within the same industry with a B (Buy) rating: Charter Communications Inc. ,umbrella,
Shares of CMCSA were trading at $38.22 per share, down $0.37 (-0.96%) on Tuesday afternoon. Year-on-year, the CMCSA has declined by -22.74%, while the benchmark S&P 500 index has gained -12.90% during the same period.
About the Author: Pragya Pandey
Pragya is an Equity Research Analyst and Financial Journalist with a passion for investing. In college she majored in finance and is currently pursuing the CFA program and is a second tier candidate.
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