Bull’s Eye Report: Comcast (CMCSA)

Don't let Comcast's recent slide fool you - it's going higher.

   

At StateoftheMarkets.com, we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.

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Company Symbol Industry Stock Rating YTD% Gain S.T.
Stop Loss
Comcast CMCSA  Cable & Satellite 8.3 +3.22% $37.91


Why We Like The Stock:

Comcast (NASDAQ:CMCSA) is our most compelling buy today due to the fact that it is a “top-rated stock” (in terms of earnings strength and company/industry performance) in a strong sub-industry, Cable & Satellite. Along with other Cable & Satellite stocks such as Dish Network (NASDAQ:DISH), Liberty Interactive (NASDAQ:LINTA), and The Walt Disney Corp. (NYSE:DIS), Comcast has exhibited considerable strength since the beginning of 2012.

The stock has been trending higher for quite some time, and one of the easiest ways to trade stocks is to catch the long-term winners on a pullback for a shorter-term move to the upside. CMCSA is on a seven-day losing streak, which has made the current price an attractive entry point. As long as the stock stays above its 50-day moving average at $37.91, the technical set-up remains positive, with a short-term upside to ~$40. So, with very limited downside risk, and a substantial short-term upside, we think this booming cable provider is today’s best trading idea.

We Would Be Buyers:

At the current price (~$38.25), or at any price between the 50-day moving average ($37.91) and $39.00.

Company Profile:

Comcast Corp. is a provider of entertainment, information and communications products and services. The Company operates in five segments: Cable Communications provides video, high-speed Internet and voice services (cable services) to residential and business customers; Cable Networks consists primarily of its national cable television networks, its regional sports and news networks, its international cable networks, its cable television production studio, and its related digital media properties; Broadcast Television consists primarily of its NBC and Telemundo broadcast networks, its NBC and Telemundo owned local television stations, its broadcast television production operations, and its related digital media properties; Filmed Entertainment consists of the operations of Universal Pictures., and Theme Parks consists primarily of its Universal theme parks in Orlando and Hollywood. In July 2012, Comcast acquired Microsoft Corporation’s 50% stake in MSNBC.com.

Stock Rating:

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.

Disclosure:

At the time of publication the editor and affiliated companies own the following positions:

CMCSA

Note: Positions may be bought or sold while this publication is in circulation without notice.

 

Comcast Corp.  Last 3 Months

 Bull's Eye Report: Comcast (CMCSA)

Comcast Corp.  Last 12 Months

 Bull's Eye Report: Comcast (CMCSA)

Comcast Corp.  Last 5 Years

 Bull's Eye Report: Comcast (CMCSA)


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