A superb return on assets and equity, excellent profit margins, and a booming Universal brand are intriguing at Comcast’s current valuation. How strong are its support levels?
Long Trade Idea
Enter your long position between $30.38 (the lower band of its horizontal support zone) and $31.41 (the upper band of its horizontal support zone).
Market Index Analysis
- Comcast (CMCSA) is a member of the NASDAQ 100, S&P 100, and the S&P 500 indices.
- All three indices defy a multitude of concerns and eek out fresh all-time highs amid growing bearish conditions.
- The Bull Bear Power Indicator of the S&P 500 shows a negative divergence and does not support the uptrend.
Market Sentiment Analysis
Equity markets continue their dangerous advance, fueling the AI bubble, and banking on more aggressive interest rate cuts by the Fed. When all news is good news, investors should consider current conditions and re-evaluate their portfolios. Futures are pointing higher, and the last few months resemble the summer of 2007, leading up to the global financial crisis of 2008. Investors are funding all AI projects, despite a 95% failure rate and the expected tremendous revenue shortfall compared to massive investments.
Comcast Fundamental Analysis
Comcast is a media and entertainment conglomerate. It is also the world’s fourth largest media company measured by revenue. In the US, it is the third-largest pay TV company, the second-largest cable TV company, and the largest internet service provider.
So, why am I bullish on CMCSA, despite its 20%+ correction?
I like the restructuring approach at Comcast, which plans to create a new company, Versant, which will hold most of its cable networks by the end of this year. The valuations are among the lowest, and the dividend yield ranks among the highest, in the S&P 500. The Universal division continues to shine, Xfinity expands, its streaming service remains solid, and its push into sports is progressing well.
Metric | Value | Verdict |
P/E Ratio | 5.12 | Bullish |
P/B Ratio | 1.16 | Bullish |
PEG Ratio | 2.39 | Bullish |
Current Ratio | 0.91 | Bearish |
ROIC-WACC Ratio | Positive | Bullish |
Comcast Fundamental Analysis Snapshot
The price-to-earning (P/E) ratio of 5.12 makes CMCSA an inexpensive stock. By comparison, the P/E ratio for the S&P 500 is 30.26.
The average analyst price target for CMCSA is $39.18. It suggests reasonable upside potential with acceptable downside risks.
Comcast Technical Analysis
Today’s CMCSA Signal
Comcast Price Chart
- The CMCSA D1 chart shows price action inside a horizontal support zone.
- It also shows price action between the descending 50.0% and 61.8% Fibonacci Retracement Fan level.
- The Bull Bear Power Indicator is bearish with an ascending trendline.
- The average trading volumes have been higher during bearish days than during bullish days since it approached its horizontal support zone.
- CMCSA corrected as the S&P 500 advanced, a bearish development, but bullish pressures are mounting.
My Call on Comcast
I am taking a long position in CMCSA between $30.38 and $31.41. I am buying the direction of Comcast at current valuations, the deployment of AI-Based network amplifiers, its expanding Lift Zones, and its push into streaming live sports.
- CMCSA Entry Level: Between $30.38 and $31.41
- CMCSA Take Profit: Between $36.02 and $36.66
- CMCSA Stop Loss: Between $28.00 and $28.86
- Risk/Reward Ratio: 2.37
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