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Should Investors Buy or Sell Comcast Stock?

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On Tuesday, Comcast (NASDAQ:CMCSA) stock fell 2.54% and closed at $41.44. Based on the last closing price, the company has a market cap of $188.7 billion. The stock price has fallen 4.01% in the trailing five-day period, while it has risen 6.0% in the trailing 12-month period.

Currently, Comcast stock is trading 13.2% below its 52-week high of $47.74 on January 17. The stock was also trading 9.4% above its 52-week low of $37.89 on March 8, 2019. On a YTD (year-to-date) basis, the stock has fallen by 7.9% as of Tuesday. In comparison, the Dow Jones Industrial Average Index and the S&P 500 Index have fallen 9.2% and 7.0% YTD, respectively.

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Analysts’ recommendations for Comcast stock

According to the latest recommendations from 37 brokerage firms surveyed by Reuters, Comcast stock has been given “buy” recommendations from 29 or ~78% of the analysts, while eight or ~22% of the analysts recommend a “hold” on the stock. None of the analysts recommend a “sell.”

Analysts have an average target price of $51.17 on Comcast. The target price implies a return of 23.5% based on the closing price of $41.44 on Tuesday. The consensus target price for the stock has fallen from $51.34 in February—a fall of 0.3%. The lowest target price estimate is $44, while the highest is $58.00.

On Tuesday, a Pivotal Research analyst decreased its target price from $54 to $52 on Comcast stock. On the same day, Benchmark also decreased its target price from $64 to $58 on the stock.

Charter Communications (NASDAQ:CHTR) and Dish Network (NASDAQ:DISH) have average broker target prices of $558.62 and $42.35, respectively. These figures imply returns of 12.8% and 29.0%, respectively, over the next 12 months.

Financial performance in Q4

Comcast’s net revenue rose 2.0% YoY (year-over-year) to $28.4 billion in the fourth quarter of 2019. Analysts expected revenue of $28.2 billion. The company’s Cable Communications segment reported revenue of $14.8 billion—a rise of 2.6% YoY. Meanwhile, the company’s NBCUniversal segment reported revenue of $9.2 billion—a fall of 2.6% YoY. Comcast’s adjusted EPS was $0.79 in the fourth quarter of 2019, which was better than $0.64 in the fourth quarter of 2018. However, analysts expected an adjusted EPS of $0.76.

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According to a FierceWireless report, “Comcast added 261,000 wireless subscribers in the fourth quarter, its largest gain yet in a single quarter, and putting it past the 2 million subscriber mark in total wireless customers. Comcast uses an MVNO agreement with Verizon to serve customers, as well as its own Wi-Fi infrastructure.” The report also said, “Its role in wireless is growing at the same time wireless operators are using their 5G deployments to better compete for cable broadband customers from the likes of Comcast and Charter Communications, which also operates as an MVNO.”

Read Key Takeaways from Comcast’s Q4 Earnings to learn more.

Comcast’s stock returns

On Tuesday, Comcast stock was trading 6.1% below its 20-day moving average of $44.15. Meanwhile, the stock is trading 7.3% below its 50-day moving average of $44.70 and 7.1% below its 100-day moving average of $44.61. The stock’s 14-day relative strength index score of 36 shows that it’s approaching the oversold level.

Comcast has an upper Bollinger Band level of $47.84. The company’s middle Bollinger Band level is $44.26, while its lower Bollinger Band level is $40.68. On Tuesday, Comcast stock closed near its lower Bollinger Band level, which also indicates that the stock is oversold.

Comcast’s dividend yield was 2.22% on Tuesday. Charter Communications and Dish Network don’t pay equity dividends.

Comcast stock is trending upward in today’s trading session. The stock rose by about 0.75% at 9:44 AM ET. Read Is There More Upside to Comcast’s Stock Price? and Comcast Buys Xumo to Boost Its Cable Division to learn more.

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