Headquartered in Philadelphia, Pennsylvania, and valued at $151.7 billion by market cap, Comcast Corporation (CMCSA) is a global media and technology company operating through Residential Connectivity & Platforms, Business Services Connectivity, Media, Studios, and Theme Parks segments.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and CMCSA rightly fits that description, signifying its substantial size, stability, and dominance in the communication services sector. Its diversified portfolio, which includes its core cable business, NBCUniversal content, and Sky's international presence, allows it to effectively serve a broad customer base.
The global media and technology giant has fallen 17.9% from its 52-week high of $47.11, which it hit on Feb. 1. CMCSA stock is down 2.3% over the past three months, underperforming the broader Nasdaq Composite’s ($NASX) 1.4% gains over the same time frame.
In the long term, CMCSA has been down 15.4% over the past year and 11.8% in 2024. By contrast, the NASX is up 13.8% on a YTD basis and 21.8% over the past 52 weeks.
To confirm the recent bearish price trend, CMCSA has been trading below its 50-day moving average since early September and below its 200-day moving average since mid-March.
CMCSA's overall underperformance is largely due to the rising trend of cord-cutting in favor of streaming platforms, which has impacted its traditional cable and broadcasting segments. While the company has ventured into streaming with offerings like Peacock, it contends with intense competition in this space.
CMCSA released its Q2 earnings results on July 23, leading to a 2.5% decline in its shares. The company reported adjusted earnings of $1.21 per share, exceeding Wall Street's expectations of $1.11 per share. However, revenue for the quarter was $29.7 billion, missing the forecast of $30.1 billion.
Highlighting the contrast in performance, rival Verizon Communications Inc. (VZ) has gained 10.3% on a YTD basis and 21.2% in the past 52 weeks.
Despite its recent underperformance compared to the NASX, analysts are reasonably optimistic about CMCSA’s prospects. The stock has a consensus rating of “Moderate Buy” from the 29 analysts covering it, and the mean price target of $46.93 is a 21.4% premium to current levels.
On the date of publication, Kritika Sarmah 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.
