Long Trade Idea
Enter your long position between $23.13 (the lower band of its horizontal support zone) and $24.11 (yesterday’s intra-day high).
Top Regulated Brokers
Market Index Analysis
Comcast (NASDAQ:CMCSA) is a member of the NASDAQ 100 Index, the S&P 100 Index, and the S&P 500 Index.
All three indices trade near all-time highs with rising bearish catalysts and worsening macroeconomic headwinds.
The Bull Bear Power Indicator for the S&P 500 Index is bearish with a descending trendline.
Market Sentiment Analysis
Equity futures are moving higher, building on yesterday’s advance following Friday’s one-day plunge. AI is leading the way again, boosted after Marvell Technology’s (NASDAQ:MRVL) inclusion into the S&P 500 and OpenAI’s announcement that it has taken the first step towards its IPO. Inflationary pressures continue amid the war in Iran, while the SpaceX IPO is oversubscribed, with $150 billion in orders for $75 billion in shares, and worries over a potential market top have increased because of the blockbuster listing.
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 correction?
While Comcast’s streaming service Peacock continues to incur losses, those losses are decreasing. It now has over 46 million subscribers and generates over $2 billion in revenue. Management guides towards profitability in the second or third quarter of this year. Valuations remain extremely low, and I am also bullish on the expectation that a significant number of its 9 million wireless line users will become paid subscribers.
Metric | Value | Verdict |
P/E Ratio | 4.66 | Bullish |
P/B Ratio | 0.96 | Bullish |
PEG Ratio | 1.43 | Bullish |
Current Ratio | 0.87 | Bearish |
ROIC-WACC Ratio | Positive | Bullish |
The price-to-earnings (P/E) ratio of 4.66 makes CMCSA an inexpensive stock. By comparison, the P/E ratio for the S&P 500 Index is 31.90.
The average analyst price target for CMCSA is $32.45. This suggests excellent upside potential with reasonable downside risks.
Comcast Technical Analysis
Today’s CMCSA Signal
The CMCSA D1 chart shows price action inside a horizontal support zone.
It also shows price action between its descending 0.0% and 38.2% Fibonacci Retracement Fan levels.
The Bull Bear Power Indicator is bearish with a positive divergence.
The average bearish trading volumes are higher than the average bullish trading volumes, hinting at potentially more short-term volatility.
CMCSA dropped by more than the S&P 500 Index, a bearish confirmation, but breakout catalysts are rising.
My CMCSA Long Stock Trade
CMCSA Entry Level: Between $23.13 and $24.11
CMCSA Take Profit: Between $30.14 and $31.03
CMCSA Stop Loss: Between $20.65 and $21.70
Risk/Reward Ratio: 2.83
Ready to trade our analysis of Comcast? Here is our list of the best stockbrokers worth reviewing.