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Has Comcast’s Stock Price Bottomed Out?

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On Thursday, Comcast (NASDAQ:CMCSA) stock fell 7.8% and closed at $34.94 with a market cap of $159.1 billion. The stock price has fallen 14.3% in the trailing five-day period, while it has fallen 11.5% in the trailing 12-month period.

Currently, Comcast stock is trading 26.8% below its 52-week high of $47.74 on January 17. The stock was also trading 1.5% above its 52-week low of $34.44 on Thursday. On a YTD (year-to-date) basis, the stock has fallen by 22.3% as of Thursday.

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Analysts’ recommendations for Comcast stock

As of Thursday, 37 analysts cover Comcast stock. Among the analysts, 29 recommend a “buy,” while eight recommend a “hold.” None of the analysts recommend a “sell.” Analysts have an average target price of $50.94 on Comcast. The target price implies a return of 45.8% based on the closing price of $34.94 on Thursday. The consensus target price for the stock has fallen from $51.34 in February—a fall of 0.3%. The highest target price estimate is $58, while the lowest is $44.

Today, Credit Suisse analyst Douglas Mitchelson reduced its target price from $55 to $51 on Comcast stock. However, the analyst kept his “outperform” recommendation on the stock. According to a report from TheFly, “Mitchelson says he is not assuming the Olympics are cancelled in August, though he would expect that to give only a modest incremental EBITDA impact, but assumes the NHL season is shortened.” The report also said, “Mitchelson says he felt the Parks closures, sporting event suspensions, Hollywood production delays and likely impacts on advertising needed to be addressed. Comcast is fortunate to be able to invest through this uncertainty, and at this time expects its businesses will have recovered by 2021 or 2022.”

On Thursday, KeyBanc decreased its target price from $50 to $46 on Comcast stock. Pivotal Research decreased its target price from $54 to $52 on the stock.

Dish Network (NASDAQ:DISH) and Charter Communications (NASDAQ:CHTR) have average broker target prices of $42.41 and $559.10, respectively. These figures imply returns of 113.7% and 30.8%, respectively, over the next 12 months.

Stock returns

On Thursday, Comcast stock was trading 16.3% below its 20-day moving average of $41.76. Meanwhile, the stock is trading 20.2% below its 50-day moving average of $43.79 and 20.8% below its 100-day moving average of $44.10. The stock’s 14-day relative strength index score of 26 indicates that it’s oversold.

Comcast has an upper Bollinger Band level of $48.64. The company’s middle Bollinger Band level is $42.25, while its lower Bollinger Band level is $35.86. On Thursday, Comcast stock closed near its lower Bollinger Band level, which also shows that the stock is oversold.

Comcast’s dividend yield was 2.63% on Thursday. Meanwhile, Dish Network and Charter Communications don’t pay equity dividends.

Comcast plans to close its Universal Studios theme park in Southern California until the end of this month due to the coronavirus outbreak. Walt Disney (NYSE:DIS) is taking similar action. Read Did Coronavirus Make Disney Stock More Attractive? to learn more.

Comcast’s revenue of $28.40 billion beat the expectation of $28.2 billion in the fourth quarter of 2019. The company’s revenue rose 2.0% YoY (year-over-year) in the fourth quarter of 2019. Comcast’s adjusted EPS of $0.79 beat analysts’ expectation by 3.9% and rose 23.4% YoY.

Comcast stock is moving upward in today’s trading session. The stock increased by 1.5% at 11:06 AM ET. Read Why Did Comcast Sell Its Entire Stake in Snap Stock? and Comcast Buys Xumo to Boost Its Cable Division to learn more.

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