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Comcast Dips 10% in 3 Months: Should You Buy, Sell or Hold the Stock?

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Comcast (CMCSA - Free Report) shares have dipped 10.4% over the past three months, underperforming the Zacks Consumer Discretionary sector’s appreciation of 9.5% and the Zacks Cable Television industry’s loss of 7.9%.

CMCSA has been suffering from intense competition in the telecom and streaming sectors, along with macroeconomic uncertainties and shifting consumer preferences.

CMCSA’s Earnings Estimates Trending Downward

The Zacks Consensus Estimate for CMCSA’s fourth-quarter revenues is pegged at $31.64 billion, indicating year-over-year growth of 1.23%.

The consensus mark for earnings is currently pegged at 88 cents per share, down by a penny over the past 30 days and indicating year-over-year growth of 4.76%.

The Zacks Consensus Estimate for CMCSA’s full-year 2024 revenues is pegged at $123.46 billion, indicating year-over-year growth of 1.56%.

The consensus mark for 2024 earnings is currently pegged at $4.25 per share, down by a penny over the past 30 days, and indicating year-over-year growth of 6.78%.

CMCSA beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 6.45%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

CMCSA Benefits From a Robust Portfolio

CMCSA is an industry leader providing gig-plus speed broadband coverage to over 63 million homes and businesses. Its robust network infrastructure is designed to accommodate rising data demands, with broadband-only customers averaging 700 GB of monthly usage.

CMCSA’s Xfinity Mobile service complements its broadband offerings by bundling wireless connectivity, aiding in improved customer retention and satisfaction. Innovative features like WiFi Boost further enhance mobile speeds and solidify the company’s competitive edge.

The upcoming launch of CMCSA’s new theme park, Epic Universe, in 2025 aims to transform its entertainment portfolio with its immersive storytelling and cutting-edge attractions.

Expanding Partner Base Aids CMCSA’s Prospects

CMCSA is actively expanding its partner base to capture new opportunities across industries. It has strengthened its partnership with Warner Bros. Discovery (WBD - Free Report) to bring popular WBD channels and streaming services, including Max and Discovery+, to Xfinity and Sky UK customers. The partnership has significantly enhanced Comcast’s content portfolio.

CMCSA’s collaboration with the NBA for the 2025-2026 season leverages basketball’s pop-culture appeal to attract broad audiences while blending sports and entertainment programming.

In the enterprise space, Comcast recently acquired Nitel, a managed services provider specializing in secure networking, cloud solutions and cybersecurity. The acquisition boosts Comcast’s ability to serve enterprise clients and expands its footprint in advanced connectivity and technology services.

CMCSA Faces Fierce Competition and Market Challenges

Despite its efforts, CMCSA has been facing intense competition in the telecom sector from rivals like AT&T, Verizon Communications (VZ - Free Report) and Frontier with aggressive fiber expansions and advanced wireless technologies.

In the streaming sector, major players like Netflix (NFLX - Free Report) , Disney and Amazon are challenging Comcast’s market share with strong content offerings.

Furthermore, macroeconomic uncertainties and evolving customer preferences also pose headwinds for CMCSA as it tries to navigate its strategies in a changing media landscape.

CMCSA Stock: Buy, Sell or Hold?

While CMCSA’s strong portfolio, strategic partnerships and upcoming ventures are noteworthy, the company is facing significant competitive pressures and market challenges at the moment.

CMCSA currently carries a Zacks Rank #3 (Hold), suggesting that it may be wise for investors to wait for a more favorable entry point in the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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