Comcast stock is just a TV entertainment ‘buy’, and both are duds

The entertainment giant has failed to maintain its best performance in the pandemic era amid soaring prices. However, demand for TV entertainment remains strong. Premium TV entertainment stock Comcast (CMCSA) may be a buy right now. However, the fundamentally weaker DISH network (DISH) and WideOpenWest (WOW) are best avoided. continue reading….

The TV entertainment industry has been battered by record-high prices, with major entertainment giants failing to maintain pandemic-era subscription rates. However, watching TV remains the most popular leisure activity.

According to reports, Men spend 3 hours a day watching TV, while women spent 2.70 hours. Strong demand for everyday TV content bodes well for the TV entertainment industry.

Additionally, investor interest in entertainment stocks grew from the Invesco Dynamic Leisure and Entertainment ETF’s (PEJ) rose 4.8% over the past month.In addition, the global entertainment and media market size is projected Growing at a CAGR of 5.9% From 2022 to 2028.

Against this backdrop, top-rated TV entertainment stock Comcast Corp. (CMCSA) could be a solid addition to your portfolio. However, DISH Networks with weaker fundamentals (plate) and WideOpenWest, Inc. (Wow) is best avoided for now.

Stocks to buy:

Comcast Corporation (CMCSA)

CMCSA is the largest provider of cable television to small and medium businesses in the United States and operates globally as a media and technology company. It operates through cable communications; media; studios; theme parks; and sky segments.

On August 22, 2022, CMCSA launched an additional multi-gigabit internet speed tier for Xfinity and CMCSA business customers in Colorado Springs. This release makes up for the fastest upload speeds to date and is a landmark addition to the CMCSA portfolio.

Additionally, on August 1, 2022, CMCSA announced a partnership with Fortinet (FTNT) is a global leader in broad, integrated and automated cybersecurity solutions designed to provide enterprises with a new suite of Secure Access Service Edge (SASE) and Secure Service Edge (SSE) solutions. This collaboration is expected to boost the business prospects of both companies.

For the second quarter ended June 30, 2022, CMCSA’s revenue was $30.02 billion, an increase of 5.1% year over year.its adjustment EBITDA Year-on-year growth of 10.1% to $9.83 billion. In addition, the company’s adjusted net profit was $4.51 billion, up 14.3% year over year.

Analysts expect CMCSA’s revenue for the year to rise 4.6% year over year to $121.72 billion. In 2022, its EPS is expected to grow 11.1% YoY to $3.59. It has beaten EPS estimates in each of the past four quarters. Shares of CMCSA were down slightly during the session, closing at $37.24 on the last trading day.

CMCSA’s POWR rating reflects this promising outlook. The company has an overall B rating, which in our proprietary rating system means a buy. POWR Ratings evaluates stocks through 118 different factors, each with its own weighting.

CMCSA is rated B for stability and quality.Inside Entertainment – TV and Internet Providers industry, it ranks first among nine stocks. Click here Check out CMCSA’s other POWR ratings for sentiment, value, growth and momentum.

Stocks to Avoid:

DISH Network Corporation (plate)

DISH and its subsidiaries provide pay-TV services in the United States. The company operates in two divisions, Pay TV and Wireless. It has about 10.71 million pay-TV subscribers in the US, including 8.22 million DISH TV subscribers and 2.49 million SLING TV subscribers.

On July 21, 2022, DISH announced the launch of ViX+ on DISH TV and SLING TV, enabling customers to subscribe to ViX+ directly through its platform. However, a drop in subscribers could hamper the release’s best earnings. The company had 2.2 million Sling TV subscribers in the most recent quarter, down 9.9% year over year.

For the second quarter ended June 30, 2022, DISH’s total revenue was $4.21 billion, down 6.2% year over year. Its net income fell 22.1% year over year to $522.83 million. Additionally, the company’s EPS fell 22.6% year over year to $0.82.

Analysts expect DISH’s revenue to fall 5.8% year over year to $16.85 billion this year. In 2022, its EPS is expected to decline 33% year over year to $2.54. It missed EPS estimates in three of the past four quarters. Over the past year, the stock has fallen 59.7% to close at $17.40 on the last trading day.

DISH’s POWR rating is in line with this bleak outlook. It has an overall rating of D, which is the equivalent of a sell in our rating system. DISH has a quality grade of F and a growth grade of D. Ranked 8th in the same industry.

We also rate DISH for Value, Momentum, Sentiment, and Stability.Get all DISH ratings here.

WideOpenWest, Inc. (Wow)

WOW provides high-speed data, cable television and digital telephone service to residential and business customers in the United States. It currently serves approximately 1.9 million homes and businesses and 532,900 customers in Alabama, Florida, Georgia, Michigan, South Carolina and Tennessee.

For the second quarter ended June 30, 2022, WOW’s total revenue was $176.1 million, down 3.2% year over year. Its telephony revenue fell 11.6% year over year to $12.9 million. Additionally, the company’s video revenue fell 13.7% year over year to $47.7 million.

Street expects WOW’s revenue to decline 31.9% year over year to $704.31 million in 2022. It has missed consensus EPS estimates in each of the past four quarters. The stock has lost 15.1% over the past three months, closing at $18.46 on the last trading day.

WOW’s POWR rating reflects its poor outlook. The stock has an overall rating of D, which equates to a sell on our POWR rating system. WOW also has a D grade in values ​​and emotions. Ranked last in the industry.

In addition to the above, we also rate WOW for its quality, growth, momentum and stability.Get all WOW ratings here.

Shares of CMCSA traded at $37.15 per share Wednesday afternoon, down $0.09 (-0.24%). Year-to-date, CMCSA is down -24.90%, while the benchmark S&P 500 has gained -12.42% over the same period.

About the Author: Riddhima Chakraborty

Riddhima is a financial journalist with a passion for analyzing financial instruments.bring one Master of Economicsshe helps investors make informed investment decisions through her insightful commentary.

more…

post Comcast stock is just a TV entertainment ‘buy’, and both are duds first appeared in Stock News Network