Comcast Corporation (CMCSA) is certainly the largest provider of mass media and communication products and services in the usa and is known as the greatest telecommunication company to draw out largest revenue around the globe. Recently, Comcast has acquired NBC Universal, which has operations in broadcasting and theme parks. This recent acquisition has made comcast reviews even bigger and put into its revenues. For investors this implies significantly 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 3 years.
Analysts have cautiously pointed out that previously Comcast Corp Stock, which trades on NASDAQ, was overvalued, that could be because the company is doing well in writing and being praised because of its financial performance.
Comcast the giant – Anyone knowledgeable about Comcast CMCSA earnings is well aware that revenues and cash flows have been in the billions of dollars. Using 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 this same year due to an increase 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 an individual customer is availing only TV services, the company can reach out to him by offering a high-speed internet connection at a much lower cost, or offer them a bundle for Internet, phone and TV services. The United States housing economy can also be a place of interest for Comcast inside the sense that as increasing numbers of new homes are now being built, new clients will need Internet and TV and phone services.
Now, we can easily notice that the result this potential will have on Comcast Corp stock analysis is that it may send the purchase price upwards. However, we should remain realistic because the housing market can also go busted since 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% on the summer of 2013. An analyst at Forbes speculates that CMCSA has not been a great stock, that is primarily because of the shares being overvalued through the 1990s to 2008. He shows that for any good to emerge from long term making an investment in stocks, identification from the right company to buy as well as a fair or reasonable price because of its stock is definitely the right mix for better rewards.
He further goes on to state that things turned for that better once the company’s strong business along with fair pricing of the shares converged together. After 2008, operating earnings have started compounded at 21.5%. All of this generated long term rewards and better returns for shareholders. Despite this, the current market (NASDAQ) was on a downward trend and Comcasts’ stock became undervalued, which managed to make it affordable to newer investors.
In his own words; “comcast 800 number is above all 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 appear to agree, since the consensus of 26 analysts reporting to S&P Capital IQ forecast five years earnings expansion of 18% per year.”
The analyst concludes by saying that Comcasts’ stock price is in line using 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 idea of selling 2 or 3 products together as a bundle has been a long technique for most businesses. At its simplest, you can consider this as buy one acquire one free. Within the case of COMCAST CORP – (CMCSA) they can provide their existing customers along with other services, such as Internet and phone services together with TV. Their bundle for those three services is known as “Triple Play” and it only costs an affordable USD 99 per month. Clients are relaxed with this simply because they just have one company to cope with, one bill to pay then one place to visit for resolution of complaints.
However, Comcast’s phone business has been facing competition from US Cellular Service Providers as people are now shifting more towards cell phone services through the traditional land line. The United States cable TV industry is wptadp shifting more towards an electronic digital system and increased competition from satellite TV providers such as Direct TV and Dish Network can also be biting into comcast headquarters. Legislation by Congress is suggesting that all ISPs should charge the identical price for all web content and this can be a threat to Comcast because it charges a fee for premium services to great number of its customers.