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Comcast (CMCSA) Provides Free Internet Services in New Jersey

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Comcast (CMCSA - Free Report) recently announced that it will be providing free and discounted Internet Service to the people of New Jersey through the affordable connectivity program (ACP). The ACP provides eligible low-income households with a credit of up to $30 per month toward the cost of their Internet and/or mobile services.

Eligible residents can now get any tier of Xfinity Internet service including Internet essentials, which provides home Internet services at no cost when the ACP benefit is applied.

Internet Essentials from Comcast has been America’s largest and most comprehensive Internet adoption program that has connected a cumulative total of more than 10 million people from low-income families to the Internet at home, including 276K in New Jersey till date.

Comcast Scales as it Expands its Presence

Comcast has been expanding its footprint in various inaccessible parts of America by addressing the needs of small and medium-sized business owners.

Project UP of Comcast, which was launched last year, has a mission of investing $1 billion in various initiatives to reach tens of millions of people over the next 10 years to provide them with the skills, resources and opportunities needed to succeed in a digital world.

Under this project, Comcast recently partnered with the City of Tacoma to advance digital equity in the region of South Puget Sound by investing $300K into four different organizations, whose mission of promoting digital equity is aligned with the company’s plans.

Comcast has also opened two more Wi-Fi-connected, laptop-equipped lift zones in Houston, TX. The new lift zones, which provide free, robust Wi-Fi services powered by Comcast Business solutions, will enable thousands of veterans, family members and the local community to take full advantage of everything the Internet has to offer.

Comcast has started working on making a network transition to DOCSIS 4.0 technology that will help it to expand much faster and at a lower cost compared to competitors in the broadband space.

However, Comcast’s second-quarter 2022 results reflected a slowing broadband user-base addition. This could be attributed to consumer behavior returning to the pre-pandemic levels as well as high competition with fixed wireless being a new entrant.

Shares of Comcast have lost 39% year to date compared to Verizon Communications (VZ - Free Report) , which declined 24.2%. The Zacks Consumer Discretionary Sector fell 38.6% in the same time frame.

Verizon plans to accelerate the availability of its 5G Ultra Wideband network covering 175 million people by the end of 2022. It is offering various mix-and-match pricing in both wireless and home broadband plans, leading to solid customer additions.

Zacks Rank and Stocks to Consider

Comcast currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Consumer Discretionary sector are BJ's Wholesale Club (BJ - Free Report) and Intercontinental Hotels Group (IHG - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here
BJ shares have gained 7.8% year to date. The Zacks Consensus Estimate for fiscal 2023 earnings is down 0.28% over the past 30 days to $3.59 per share.

IHG shares are down 21.1% year to date. The Zacks Consensus Estimate for 2022 earnings is constant at $2.77 per share over the past month.


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