Comcast Corporation (CMCSA) is certainly the biggest provider of mass media and communication products and services in america and is considered as the biggest telecommunication company to extract largest revenue around the globe. Recently, Comcast has acquired NBC Universal, which includes operations in broadcasting and theme parks. This recent acquisition makes comcast phone number even bigger and put into its revenues. For investors this implies much better dividends. The stock price though hasn’t always been a popular of the stock market and only recently has stared to pick up over the course of the past three years.
Analysts have cautiously pointed out that previously Comcast Corp Stock, which trades on NASDAQ, was overvalued, which could be because the company does well in writing and being praised for its financial performance.
Comcast the giant – Anyone acquainted with Comcast CMCSA earnings is well conscious of revenues and cash flows have been in the huge 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 in 2009 in revenues from franchise fees. Phone services contributed USD 3.3 billion in that same year due to a rise in customer base.
Mouth-watering and Appetizing Prospects for Investors. Comcast’s huge customer base means that they can tap to their already existing pool of customers. As an example, if a person customer is availing only TV services, the company can get in touch with him by offering a high speed Internet connection with a much lower cost, or offer them a lot of money for Internet, phone and television services. The Usa housing economy is additionally an area of interest for Comcast in the sense that as increasing numbers of new homes are being built, new customers will demand Internet and TV and phone services.
Now, we can easily observe that the impact this potential could have on Comcast Corp stock analysis is it may send the cost upwards. However, we should remain realistic as the housing marketplace can also go busted since it did throughout the sub-prime mortgage crisis.
Investor and Analyst Sentiments. Investors have witnessed very healthy returns as CMCSA stock price has gone up 35% on the summer of 2013. An analyst at Forbes speculates that CMCSA has not for ages been a good stock, which can be primarily because of the shares being overvalued with the 1990s to 2008. He shows that for just about any good to come out of long term purchasing stocks, identification from the right company to purchase as well as a fair or reasonable price for its stock will be the right mix for better rewards.
He further continues to state that things turned for the better if the company’s strong business along with fair pricing of their shares converged together. After 2008, operating earnings have started compounded at 21.5%. This all generated long term rewards and much better returns for shareholders. Regardless of this, the current market (NASDAQ) was on the downward trend and Comcasts’ stock became undervalued, which made it reasonable for newer investors.
In his own words; “comcast 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 are in the cards for shareholders down the road. 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 saying that Comcasts’ stock prices are 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 concept of selling 2 or 3 products together as a bundle is a long strategy for most businesses. At its simplest, you can consider this as buy one get one free. Inside the case of COMCAST CORP – (CMCSA) they can provide their existing customers with other services, including Internet and phone services together with TV. Their bundle for those three services is called “Triple Play” plus it only costs an affordable USD 99 per month. Consumers are relaxed using this since they just have one company to deal with, one bill to cover then one place to go to for resolution of complaints.
However, Comcast’s phone business has additionally been facing competition from US Cellular Providers as individuals are now shifting more towards cell phone services from your traditional land line. The US cable television industry is wptadp shifting more towards a digital system and increased competition from satellite TV providers including Direct TV and Dish Network can also be biting into comcast number. 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 as it charges a fee for premium services to multitude of its customers.