Comcast Corporation (CMCSA), headquartered in Philadelphia, Pennsylvania, is a global media and technology company operating through Residential Connectivity & Platforms, Business Services Connectivity, Media, Studios, and Theme Parks segments. Valued at $152.20 billion by market cap, the company provides broadband, wireless, and video through Xfinity, Comcast Business, and Sky; produces, distributes, and streams leading entertainment, sports, and news through brands like NBC, Universal, Sky, Peacock; and theme parks and attractions through Universal Destinations & Experiences.
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 its industry.
The global media and technology giant has fallen 19.3% from its 52-week high of $47.46, which it hit on Aug. 16, 2023. Shares of CMCSA are down 12% over the past three months, underperforming the broader S&P 500 Index’s ($SPX) 5% gains over the same time frame.
Longer term, CMCSA is down 4.8% over the past year. In 2024 alone, the shares have declined 12.6% on a YTD basis. By contrast, the SPX is up 12.7% on a YTD basis and 25% over the past 52 weeks.
To confirm the recent bearish price trend, CMCSA has been trading below its 50-day moving average since early April and below its 200-day moving average since mid-March.
On Apr. 25, CMCSA stock fell 6% after reporting its Q1 results. The company’s revenue was $30.06 billion, surpassing the consensus estimate of $29.73 billion. Its adjusted EPS was $1.04, beating the analysts’ expectations of $0.98. CMCSA increased its wireless customer subscriber count by 21% to 6.9 million subscribers.
CMCSA’s overall underperformance can be attributed to the growing trend of cord-cutting in favor of streaming platforms, which affected its traditional cable and broadcasting segments. Although the company is present in streaming through offerings like Peacock, it also faces intense competition. CMCSA’s broadband unit is also struggling, as it lost 65,000 subscribers in Q1.
Highlighting the contrast in performance, rival Fox Corporation (FOXA) has gained 12.4% on a YTD basis but is down marginally in the past 52 weeks.
Despite its recent underperformance compared to the SPX, analysts are 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 $48.65 is a 27% premium to current levels.
On the date of publication, Dipanjan Banchur 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.
