Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

We are maintaining our Neutral recommendation on Comcast Corp. (CMCSA - Analyst Report) on the back of its strong momentum in the third quarter of 2012, supported by healthy businesses generated during the London Olympics. While the company’s Cable businesses continue to beat market expectations, NBC Universal division makes a turnaround.

Importantly, the company’s struggling basic video operation continues its positive momentum. Meanwhile, Comcast has completed its major technical innovations, such as DOCSIS 3.0, all digital networks, and a multi-platform content delivery network.

Several newly launched services, such as Xfinity Home, Wi-Fi, and X1 will act as long-term growth catalysts for the company. Comcast is generating huge free cash flow and paying regular dividends. On the flip side, the stock price has soared nearly 75% in the last year, which may restrict any above market gain. Comcast, currently commands a short-term Zacks #3 Rank (Hold) on the stock.

Though Comcast is losing basic video subscribers, it has performed well while reducing its churn rate despite facing a sluggish U.S. economy. In the third quarter of 2012, Comcast lost 117,000 video subscribers compared with a net loss of 165,000 video subscribers in the prior-year quarter. Furthermore, in the previous quarter, the company gained a net 287,000 high-speed Internet subscribers and 123,000 telephony customers.

The recently concluded London Olympics was a huge success for Comcast. The TV ratings of NBC Universal sports channels have increased by 30% during the Olympics. NBC Universal generated a massive $1.25 billion in advertising revenue in the London Olympics. Further, the company has won the U.S. telecast right for the 2014 and 2018 winter Olympic Games and the 2016 and 2020 summer Olympic Games.

Alongside, NBC Universal outbid its closest rivals ABC and ESPN networks controlled by Walt Disney Co. (DIS - Analyst Report) and Fox Network controlled by News Corp. (NWSA - Analyst Report). NBC Universal will pay a total consideration of $4.38 billion for these four Olympic Games.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%