Opinions
The Panic-Proof Portfolio (Stockchase Research)
Comcast Corp
CMCSA-Q
TOP PICK
Dec 10, 2024
$39.405
Stock price when the opinion was issued
Cable
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HOLD
Hard time executing on plans. Fierce competition in cable and fixed wireless. Pace of broadband subscriber additions much weaker than expected. Peacock streaming way below target. One of the cheapest names in the space at 10x earnings. Free cashflow yield is high at 9%. Buying back stock. Safe holding. Could go into mid-40s in the next year or so.
Cable
TOP PICK
Gets no respect, as it's seen as cable/TV, a dying business. Has 6 growth businesses: broadband for residential and business, wireless, theme parks, streaming, and studios. Together, those are growing about 10% a year, and will be 75% of the business over the next few years. Anemic 11x, growth of 10%. Defensive, still room to go. Yield is 2.46%.
(Analysts’ price target is $50.31)
Cable
CMCSA released some worrisome news that they expect to continue to lose customers to growing competition. However, they are managing a strategy to off load some of its services and has also announced a partnership with Warner Bros that could open some new revenue streams. We like that cash reserves are growing as debt is retired and shares bought back. It trades at 12x earnings, under 2x book and supports a 17% ROE. We recommend setting a stop-loss at $35, looking to achieve $48 -- upside potential of 20%. Yield 3.1%
(Analysts’ price target is $48.14)