Comcast Corporation (CMCSA) is definitely the biggest provider of mass media and communication services in the United States and is known as the biggest telecommunication company to draw out largest revenue all over the world. Recently, Comcast has acquired NBC Universal, which includes operations in broadcasting and theme parks. This recent acquisition has made comcast customer service even bigger and included in its revenues. For investors this means significantly better dividends. The stock price though hasn’t always been a well liked of the stock market and only recently has stared to pick up during the period of the past three years.
Analysts have cautiously remarked that previously Comcast Corp Stock, which trades on NASDAQ, was overvalued, that could be as the company is performing well on paper and being praised for its financial performance.
Comcast the giant – Anyone familiar with Comcast CMCSA earnings is well conscious that revenues and cash flows have been in the vast amounts of dollars. With all the numbers that Comcast boasts, its not hard to find out why. Comcast has 23.6 million video customers, 15.9 million high speed Internet customers, and 7.6 million phone customers. Additionally, Comcast has earned USD 948 million during 2009 in revenues from franchise fees. Phone services contributed USD 3.3 billion because same year because of an increase in customer base.
Mouth-watering and Appetizing Prospects for Investors. Comcast’s huge customer base signifies that they can tap to their already existing pool of clients. As an example, if a person customer is availing only TV services, the company can get in touch with him by providing a high-speed internet connection with a much lower cost, or offer them a lot of money for Internet, phone and TV services. The US housing economy is additionally an area of interest for Comcast inside the sense that as increasing numbers of new homes are now being built, new business will demand Internet and TV and phone services.
Now, we can easily notice that the result this potential could have on Comcast Corp stock analysis is that it may send the price upwards. However, we must remain realistic since the housing market can also go busted as it did throughout the sub-prime mortgage crisis.
Investor and Analyst Sentiments. Investors have seen very healthy returns as CMCSA stock price went up 35% over the summer of 2013. An analyst at Forbes speculates that CMCSA has not yet been an excellent stock, which can be primarily because of their shares being overvalued from the 1990s to 2008. He shows that for virtually any good to come out of long term making an investment in stocks, identification in the right company to invest in along with a fair or reasonable price because of its stock is definitely the right mix for better rewards.
He further continues on to state that things turned for the better when the company’s strong business combined with fair pricing with their shares converged together. After 2008, operating earnings have started compounded at 21.5%. All this generated long term rewards and better returns for shareholders. Despite this, the market (NASDAQ) was on a downward trend and Comcasts’ stock became undervalued, which caused it to be reasonable for newer investors.
Within his own words; “comcast phone number is first and foremost an above-average growth stock that now pays a dividend. Above average capital appreciation as well as a rapidly increasing dividend will be in the cards for shareholders later on. Leading analysts manage to agree, as the consensus of 26 analysts reporting to S&P Capital IQ forecast five-years earnings development of 18% per year.”
The analyst concludes by proclaiming that Comcasts’ stock cost is in line with its intrinsic value since their current Price-to-Equity Ratio is nearly as good as their expected long term growth rate for earnings.
Comcast Strategies and Competitive Environment – The thought of selling 2 or 3 products together as being a bundle has been a long strategy for most businesses. At its simplest, you can consider this as get one acquire one free. Within the case of COMCAST CORP – (CMCSA) they can provide their existing customers with other services, like Internet and phone services along with TV. Their bundle for many three services is known as “Triple Play” and it only costs a reasonable USD 99 per month. Consumers are at ease with this simply because they have only one company to handle, one bill to pay for and something place to visit for resolution of complaints.
However, Comcast’s phone business has been facing competition from US Cellular Service Providers as consumers are now shifting more towards mobile phone services from your traditional land line. The United States cable TV marketplace is wptadp shifting more towards an electronic digital system and increased competition from satellite TV providers including Direct TV and Dish Network is additionally biting into comcast customer service. Legislation by Congress is suggesting that all ISPs should charge the same price for many web content and this can be a threat to Comcast since it charges a fee for premium services to great number of its customers.