The Best TV and Internet Provider to Buy This Month | Jobs Recent

Despite growing economic concerns, leading TV and Internet providers Comcast Corporation’s (CMCSA) third-quarter revenue beat Wall Street expectations thanks to continued growth in its theme parks and studios businesses. Revenue for its studios business tripled to $537 million in the quarter.

In the third fiscal quarter, the company’s Cable Communications line launched multi-gig broadband speeds in markets across the US, and the company also announced the launch of Even Faster, multi-gig speeds starting in 2023.

CMCSA gained 3.6% over the past month to close the last trading session at $35.35.

In addition, the stock has an impressive record of paying dividends. It paid a dividend of $1.08 per share last time and has an annual yield of 3.06%. It has a 4-year average yield of 2.07%. The company’s share has grown at a CAGR of 8.9% in the last three years and at an average of 11.7% in the last five years.

CMCSA has raised its dividend for five consecutive years and has been paying dividends for the past 13 years.

Here’s what could shape CMCSA’s performance in the near term:

Recent Good Developments

On December 12, 2022, CMCSA launched the world’s first live, multigigabit equivalent Internet connection powered by 10G and Full Duplex DOCSIS 4.0. 10G technology. The technology promises to offer customers next-level speed and performance and is expected to increase CMCSA’s product portfolio significantly.

Last month, CMCSA announced the opening of its new Xfinity store in Mill Creek to meet the growing needs of its local customers in Snohomish County. The expansion should help the company serve different markets.

In early September, CMCSA announced that its Board of Directors has promoted sharing repurchases program authorizations total up to $20.0 billion. As of September 30, 2022, Comcast had $19.5 billion available under share repurchase authorizations. This demonstrates the company’s financial strength and commitment to enhancing shareholder value.

Hard Money

For the fiscal third quarter ended Sept. 30, CMCSA’s Cable Communications revenue increased 2.6% year over year to $16.54 billion. Adjusted net income came in at $4.22 billion, up 4.5% year over year, while its adjusted EPS rose 10.3% year over year to $0.96.

Also, its adjusted EBITDA grew 5.9% year-over-year to $9.48 billion in the same quarter.

Strong Profits

CMCSA’s 12-month gross margin of 68.41% is 35.97% higher than the industry average of 50.32%. Also, trailing 12 month EBIT and EBITDA margins of 18.91% and 30.40% are 104.46% and 60.38% higher than their industry average of 9.25% and 18.95%.

Furthermore, its trailing 12-month FCF margin of 9.34% is 16.85% higher than the industry average of 8%. Its ROTC and CAPEX/Sales of 7.55% and 8.63% are 83.65% and 121.30% higher than their industry averages of 4.11% and 3.90%.

Discounted Valuation

On a forward non-GAAP PEG basis, the stock is currently trading at 0.87x, which is 37.37% lower than the industry average of 1.38x. Also, its forward EV/EBIT of 10.89x is 26.26% lower than the industry average of 14.76x. In addition, CMCSA’s forward Price/Cash Flow of 5.82x is 35.27% lower than the industry average of 9.00x.

Impressive Growth Prospects

Analysts expect its EPS to grow 7.4% year-over-year to $0.83 in the fiscal fourth quarter ending in December 2022. Likewise, they expect revenue to rise slightly year-over-year to $30.47 billion in the same quarter.

CMCSA’s revenue and EPS are likely to increase by 4.2% and 12.3% year-over-year to $121.29 billion and $3.63 billion in the current fiscal year ending December 2022. In addition, the company has an impressive track record of revenue and earnings claims , as it has passed. Its consensus EPS and revenue estimates for each of the next four quarters.

POWR Estimates Show Strong Prospects

CMCSA has a perfect B grade, which equates to a buy rating on our portfolio POWR Ratings system. POWR ratings are calculated by taking into account 118 different factors, each factor being weighted to the correct level.

Our proprietary rating system also evaluates each stock based on eight different categories. CMCSA’s Grade B in Growth is aligned with its strong financials.

Its solid profitability justifies its B grade for quality.

The stock is ranked first among the nine stocks in the Entertainment – ​​TV & Internet Providers industry.

In addition to the above, we have included CMCSA’s Stability, Sentiment, Value, and Momentum ratings. Find all CMCSA ratings here.

The Bottom Line

CMCSA recently launched the world’s first live Internet connection, which could increase its market presence and help it stay relevant in the industry.

Moreover, with its strong earnings, reduced valuation, consistent dividend payout record, and favorable analyst sentiment, the stock is poised to grow in the near term. So, I believe it would be a solid buy now.

Shares of CMCSA were trading at $34.75 per share on Thursday afternoon, down $0.60 (-1.70%). Year to date, CMCSA is down -29.13%, compared to a -17.32% rise in the benchmark S&P 500 index over the same period.

About the Author: Kritika Sarmah

Her interest in risk instruments and love of writing made Kritika a financial analyst and journalist. He received his bachelor’s degree in commerce and is currently pursuing the CFA program. At his core, he aims to help investors identify untapped investment opportunities. More…

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