Philadelphia, Pennsylvania-based Comcast Corporation (CMCSA) operates as a media and technology company worldwide. With a market cap of $163.6 billion, Comcast operates through Residential Connectivity & Platforms, Business Services Connectivity, Media, Studios, and Theme Parks segments.
The telecoms and entertainment giant has substantially underperformed the broader market over the past year. CMCSA stock prices experienced a marginal decline in 2024, lagging behind the S&P 500 Index’s ($SPX) surge of 19.6% on a YTD basis. CMCSA has gained 8% over the past 52-week period compared to the SPX’s 36.9% returns during the same time frame.
Zooming in further, Comcast has also underperformed iShares U.S. Telecommunications ETF’s (IYZ) 12.4% gains on a YTD basis and 26% returns over the past 52 weeks.
Comcast is feeling the heat as cord-cutting reshapes the media landscape, steering viewers toward streaming and away from traditional cable and broadcasting. While the company has thrown its hat in the ring with Peacock, competition in streaming remains fierce, putting pressure on its growth. Adding to the turbulence, recent data breaches affecting many Xfinity customers have left CMCSA dealing with cybersecurity concerns on top of industry shifts.
Yet, CMCSA’s resilience showed when it posted its Q3 earnings yesterday, surprising analysts’ forecasts and giving the stock a 3.4% boost. Revenue hit $32.1 billion, up 6.5% year-over-year, and non-GAAP adjusted EPS rose to $1.12, beating estimates by 5.7%. Despite the challenges, Comcast’s recent numbers reveal a company that’s fighting to stay relevant in a rapidly evolving market.
For the current fiscal year, ending in December 2024, analysts expect Comcast to report a 6.5% year-over-year growth in adjusted EPS to $4.24. The company has a robust earnings surprise history and surpassed Wall Street’s earnings estimates in each of the past four quarters.
CMCSA stock has a consensus “Moderate Buy” rating overall. Among the 29 analysts covering the CMCSA stock, 15 recommend a “Strong Buy,” one advises “Moderate Buy,” 12 suggest a “Hold,” and one advocate a “Strong Sell” rating.
This configuration has been consistent over the past months.
On Oct. 30, Benchmark Co. analyst Matthew Harrigan maintained a Buy rating on Comcast with a price target of $55.
While CMCSA’s mean price target of $46.79 represents a premium of 7.1%, its Street-high target of $57 indicates a potential upside of 30.5% from current price levels.
On the date of publication, Aditya Sarawgi 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.
