Trade of the Day: Buy CMCSA Stock Under $60

Advertisement

Comcast Corporation (CMCSA) — This media giant completed its takeover of NBC Universal in 2011, becoming a major force in broadcasting, film and theme parks. I believe CMCSA stock should be included in both trading and long-term portfolios as a representative of the fast growth being experienced in the cable/satellite industry. Because of management’s vast experience in broadcasting and broadband, they should be able to integrate recent acquisitions to stockholders’ advantage. Further, Universal Pictures has one of the strongest film portfolios in the industry and is well suited to provide streaming video to subscribers.

The company showed a 10% increase in net income in the first quarter due in part to strength in the cable unit and the turnaround in NBCUniversal, with broadcast and theme parks considered bright spots. The company sports a solid balance sheet, and management recently boosted its 2015 share buyback plan by $2.5 billion to $6.75 billion.

Q1 earnings of 79 cents per share beat Capital IQ’s estimate by 2 cents. Its analysts have a 12-month target of $66 on CMCSA stock, which is only 8.3 times estimated 2015 EV/EBITDA,

CMCSA stock has been in a bull market since breaking from an intermediate consolidation in February 2012 at about $30. The stock is currently trading in a well-defined bull channel with trendline support at $56.

Within the channel is further support, first at its 50-day moving average at $58.62, and then its 200-day moving average at $56.86. It has been under significant accumulation since April, and its MACD indicator is bullish. The lower trendline features two buy signals from my proprietary indicator, the Collins-Bollinger Reversal (CBR), the most recent in mid-June.

My buy under price for CMCSA stock is $60 with a trading target of $66. Long-term investors may consider this influential media giant as an investment-grade, big-cap addition to their portfolio.

CMCSA Stock
Click to Enlarge

Chart Key


Article printed from InvestorPlace Media, https://investorplace.com/2015/06/comcast-corporation-cmcsa-stock-trade-of-the-day/.

©2024 InvestorPlace Media, LLC