Comcast (CMCSA) stock price forecast
US media giant Comcast (CMCSA) has seen its share price fall 28% this year after underwhelming stock market analysts and a mixed bag of results.
Comcast live price chart
Does the recent share price weakness mean that now is a good time to buy into Comcast or are investors likely to endure more misery over the coming months?
In our CMCSA stock forecast we examine recent results, highlight the latest company news and look at where analysts expect the stock price will go next.
What is Comcast?
The company was founded in 1963 by Ralph Roberts through the purchase of American Cable Systems, a business with 1,200 subscribers in Tupelo, Mississippi. Today it’s a global media and technology business with two main divisions: Comcast Cable and NBCUniversal.
Comcast Cable is one of the largest video, high-speed internet and phone providers in the US. It also offers wireless cell phone services as Xfinity Mobile.
NBCUniversal owns and operates a portfolio of broadcast and cable television networks, including CNBC, NBC Sports, E! and Bravo. It also covers motion picture companies, such as Universal Pictures and DreamWorks Animation, along with theme parks and a suite of internet-based businesses.
Sky, which Comcast acquired in 2018, is a leading television provider in the UK and has invested heavily in “exclusive and proprietary content”, according to Morningstar.
What is your sentiment on CMCSA?
Stock price analysis
Comcast is listed on the Nasdaq Global Select Market under the ticker ’CMCSA’. Its initial public offering (IPO) was on 29 June 1972. On that date, 430,000 shares were issued at $7 a share.
Any Comcast share price forecast has to consider where the stock has been over the past year.
The CMCSA stock price has fallen 28% this year, from $50.74 in early January to $36.52 at market close on 12 December 2022. It’s down 9% in the past six months.
However, there have been some recent signs of improvement. Despite the stock initially slipping 5% to $30.38 when third quarter results were published in late October, it has since risen 20%.
Over the longer-term, Comcast’s performance has been strong. It has achieved trailing returns of 8.79% over the past 10 years, comfortably ahead of the telecom service industry’s 2.89%, according to Morningstar.
The all-time high Comcast stock closing price was $59.90 on 2 September, 2021. The average Comcast stock price for the last 52 weeks is $41.05.
As of 13 December, the company had a market capitalisation of $157.89bn. This makes it the world’s third largest telecommunications company behind T-Mobile US (TMUS) and Verizon (VZ), according to CompaniesMarketCap.
It’s also the second largest entertainment company behind Walt Disney (DIS) and the 65th biggest company in the world.
Q3 earnings results
A key element of any CMCSA stock forecast is how the company has been performing. Comcast’s third quarter results, announced in late October, contained positives and negatives that left some stock market analysts feeling underwhelmed.
Consolidated revenue came in at $29.8bn – 1.5% lower than the $30.3bn recorded during the corresponding quarter in 2021.
Net loss for the period stood at -$4.5bn, compared to positive $4bn last year, while adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was up 5.9% to $9.5bn.
Revenue for cable communications rose 2.6% to $16.5bn, driven by increases in broadband, business services, wireless and advertising revenue.
Revenue for NBCUniversal fell 4.3% to $9.6bn, although last year included an incremental $1.8bn from the Tokyo Olympics. Elsewhere, the theme park operations are continuing to recover from the devastating impact of the Covid-19 pandemic.
For the nine months to the end of September, theme park revenue increased 71.6% to $5.4bn, primarily reflecting improving operating conditions compared to 2021.
Reaction of analysts
Overall, investors seemed relieved that broadband trends didn’t worsen during the third quarter. Michael Hodel, director at Morningstar wrote in his latest Comcast stock forecast:
Hodel also pointed out that Comcast had generated about $3.40 a share in free cash flow over the past year, which it has returned to shareholders through buybacks and dividends.
“Management indicated that at the current share price, the bar for acquisitions is high. Given our unchanged $60 fair value estimate, we agree that buying back stock aggressively is a great way to increase shareholder value.”
Elsewhere, Diamond Hill, an investment management company, highlighted its long position in Comcast as one of the “bottom contributors” to its recent performance. In a quarterly long-short fund update, the managers wrote:
Latest news
On 12 December, Comcast announced the world’s first live, multigigabit symmetrical internet connection powered by 10G. It said 10G technology will “revolutionise the availability of ultra-fast speeds” by delivering services over connections already installed in hundreds of millions of homes.
The world-first live trial saw Comcast connect a business location in Philadelphia to its live network to deliver high speed data service.
Charlie Herrin, Chief Customer Experience Officer at Comcast Cable, said:
Comcast stock forecast: Where will the price go next?
So, what are the Comcast stock predictions of Wall Street?
As of 13 December, the stock is a ‘hold’, based on the views of 24 analysts compiled by MarketBeat, although some are more optimistic than others. 12 of them had ‘buy’ recommendations in place for their Comcast stock forecast and 10 saw it as a ‘hold’, while the remaining two believe it’s a ‘sell’.
Their consensus Comcast stock forecast 2023 was for the price to hit $44.87 over the coming year, which would represent a 22.86% upside over the $36.52 closing price on 12 December. The highest CMCSA stock price prediction was $62, while the lowest suggested the stock price could fall to $33.
However, the stock is viewed as a “bad long-term (one year) investment”, according to the algorithmic forecasts of Wallet Investor. It predicted the price could fall slightly to $36.3% over the coming year, while its Comcast stock forecast 2025 has the stock recovering to $38.83.
FAQs
Is Comcast a good stock to buy?
This depends on various factors. To decide if Comcast is a good stock for you to buy, you’ll need to carry out your own research into the stock. Remember, there are no guarantees so you must only invest what you can afford to lose.
Will Comcast stock go up or down?
The consensus view of 24 analysts compiled by MarketBeat as of 13 December, was for the CMCSA stock price to rise 22.86% to $44.87 over the coming year. However, the most optimistic believed the price could reach $62, while the lowest prediction was $33.
Should I invest in Comcast stock?
This needs to be your decision. The consensus Comcast stock predictions of analysts compiled by TipRanks put CMCSA stock as a ‘moderate buy’. However, you must remember that analysts can be wrong with their predictions. Forecasts shouldn’t be used as a substitute for your own research. Always conduct your own due diligence before trading. And never invest or trade money you cannot afford to lose.
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