Stock Price & Analysis

Buy CMCSA as it is undervalued with improving fundamentals and strong contrarian interest. Sell CMCSA if you are risk-averse due to mixed analyst sentiment and near-term margin pressures.

Comcast's stock price is predicted to reach around $40 in 2025, driven by its strategic shift towards converged product bundles and despite broadband subscriber challenges. Analysts expect resistance at $38 and $39 levels.

The S1 support level for CMCSA Stock is $36.08 ,The R1 resistant level for CMCSA Stock is $37.5.

As of the end of day on 2025-04-01, the price of CMCSA Stock was $36.735.

The target price for CMCSA Stock according to analyst rating is 41.50, with the highest price target at 55.00 and the lowest at 35.00. Analysts have a Moderate Buy rating on CMCSA Stock overall.

The market cap of CMCSA is $138.8B.

Analysis and Insights

To determine if Comcast (CMCSA) is overvalued, we analyze its valuation metrics, financial performance, and market sentiment.

Valuation Metrics:

• PE Ratio: 11.24 (Q3) and 9.06 (Q4), lower than industry averages, suggesting undervaluation.
• EV/EBITDA: 6.84 (Q3) and 6.2 (Q4), below the industry average of 8-10.
• PS Ratio: 1.34 (Q3) and 1.19 (Q4), indicating reasonable pricing relative to revenue.
• PB Ratio: 1.87 (Q3) and 1.66 (Q4), showing moderate asset valuation.
• Dividend Yield: 2.92% (Q3) and 3.3% (Q4), higher than many peers, attractive for income investors.

Financial Performance:

• Revenue: Stable at $31.9B for both Q3 and Q4, indicating consistent operations.
• Net Income: Increased from $3.63B to $4.78B, reflecting improving profitability.
• Gross Margin: ~56%, healthy and stable.
• ROE: 17.43% (Q3) and 19.25% (Q4), showing efficient equity use.

Analyst Sentiment:

Analysts have mixed views, with some downgrades but an average price target of $44, suggesting a 15% upside. Recent downgrades cite broadband subscriber concerns, while others maintain a positive outlook.

Technical Analysis:

The stock is trading at $36.59, near its 200-day moving average, indicating support. RSI of ~57 shows a neutral trend, with Fibonacci support at $34.89 and resistance at $37.43.

Conclusion:

Comcast appears fairly valued with potential upside. Positive factors include stable revenue, improving margins, and a strong dividend yield. However, high debt and low current ratio are concerns. While not significantly overvalued, investors should monitor broadband trends and debt levels.

Comcast Corporation is a global media and technology company. It delivers broadband, wireless, and video through Xfinity, Comcast Business, and Sky; produce, distribute, and stream entertainment, sports, and news through brands, including NBC, Telemundo, Universal, Peacock, and Sky; and brings theme parks and attractions to life through Universal Destinations and Experiences. It operates through two primary businesses: Connectivity & Platforms and Content & Experiences. The Connectivity & Platforms segment contains its broadband, wireless, video and wireline voice businesses in the United States, United Kingdom and Italy. It also includes the operations of its Sky-branded entertainment television networks in the United Kingdom, and Italy. The Content & Experiences segment contains media and entertainment businesses that produce and distribute entertainment, sports, news and other content for audiences and that own and operate theme parks and attractions in the United States and Asia.

Comcast (CMCSA) is expected to reach a stock price of $50-$65 by 2030, driven by its strong fundamentals and potential growth in the communications services sector. The stock is currently undervalued with a high contrarian score of 90%, indicating improving fundamentals and valuation as a large-cap value stock. However, challenges such as broadband subscriber losses and increased competition from fiber and fixed wireless access may limit upside potential.

CMCSA has a total of 186000 employees.