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Comcast Stock: Is Now the Right Time to Buy?

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Comcast (CMCSA) stock is currently trading 14.29x its 2019 estimated EPS of $3.07. CMCSA is trading 12.88x its 2020 estimated EPS of $3.41. Analysts expect its adjusted EPS to rise 20.4% in 2019 and 11.1% in 2020. In our view, Comcast stock looks undervalued, considering its expected earnings growth in 2019.

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CMCSA stock movement

Comcast fell 0.9% on September 3 and closed at $43.88. The stock’s five-day, one-month, and year-to-date price movements were 1.2%, 2.9%, and 28.9%, respectively.

Notably, the stock is trading 3.1% lower than its 52-week high of $45.30. The company is trading 34.6% higher than its 52-week low of $32.61. Comcast stock has also risen 18.6% in the trailing 12 months. On September 3, the company’s market capitalization was $199.4 billion.

Analysts’ recommendations on Comcast stock

Of the 34 analysts covering Comcast, 28 recommended a “buy” for the stock, and six recommended a “hold.” There were no “sell” recommendations on September 3.

Analysts have an average 12-month target price of $49.28 for Comcast stock, with a median target price of $50. As a result, Comcast is trading at a discount of 13.9% to median analyst estimates.

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RSI and MACD

Comcast’s 14-day RSI (relative strength index) is 53, which shows that investors are neutral toward the stock. Comcast’s 14-day MACD (moving average convergence divergence) is 0.59. A positive MACD figure indicates an upward trading trend.

Technical levels

Based on its closing price on September 3, Comcast stock was trading 1.5% above its 20-day moving average of $43.22. The stock traded 1.0% above its 50-day moving average of $43.43, and it traded 2.2% above its 100-day moving average of $42.92.

On the downside, the company’s immediate key support lies near $43.58, while $44.13 could act as an immediate key resistance level on a daily basis.

During the September 3 trading session, Comcast stock closed near its Bollinger Band midrange level of $43.22. This value indicates that the stock is neither oversold nor overbought.

Revenue and earnings expansion

In 2018, Comcast reported adjusted EPS of $2.55 on revenue of $94.51 billion. Analysts expect Comcast’s sales to rise 16.1% year-over-year to $109.70 billion in 2019 and 5.3% year-over-year to $115.54 billion in 2020.

The company’s adjusted earnings per share are also expected to rise 20.4% to $3.07 in 2019 and 11.1% to $3.41 in 2020. This denotes a compound annual growth rate of 10.3% over the next five years.

Comcast did not renew its carriage programming contract with Altitude Sports. As a result, Altitude’s regional sports channel went dark on Comcast’s platform on September 1.

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