This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Media Companies Look Good but Comcast Looks Great

Comcast also has a "Filmed Entertainment" segment consisting of the operations of Universal Pictures, including Focus Features, which produces, acquires, markets and distributes filmed entertainment worldwide in various media formats for theatrical, home entertainment, television, and other distribution platforms.

To add to its massive revenue-generating operation, Comcast also has a Theme Parks division that comprises theme parks, studios, and a dining, retail, and entertainment complex. Comcast Corporation also owns a multipurpose arena in Philadelphia and provides facilities management and food services for sporting events, concerts, and other events.

The company aggressively offers its services directly to residential and business customers through call centers, door-to-door selling, direct mail, television, Internet and local media advertising. Comcast actively uses telemarketing and retail outlets to promote their services.

Little wonder that its first-quarter revenue growth (year-over-year) was close to 23% and quarterly earnings growth in the first quarter soared by 30%.

The company reports second-quarter results on Wednesday. It would not surprise this author if the results exceed analysts' expectations.

If the company disappoints or barely meets earnings projections and lower earnings guidance for the third quarter, we may have a chance to buy Comcast shares closer to their June 25 intraday low of $30.21.

The stock traded as low as $28.09 on May 21, and that kind of price correction isn't out of the realm of possibilities either. The chart below shows you their stock price history and how well it correlates to their earnings per share. CMCSA Earnings Per Share Chart CMCSA Earnings Per Share data by YCharts

Comcast also pays a current dividend yield of 2.1% based on a share price closer to $31. That's a payout ratio of 28%, which is both sustainable and able to support a more generous dividend.

In contrast, News Corp's current 17 cents annual dividend pays a paltry yield of 0.74% based on a share price of $22.85. NWS had first-quarter earnings growth (year over year) of nearly 47% but the quarterly revenue growth rate was a meager 1.8% compared to Comcast's 23%.

Let's take a look at a similar chart of NWS comparing its stock price history with EPS growth. NWS Earnings Per Share Chart NWS Earnings Per Share data by YCharts
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CMCSA $60.89 -0.10%
NWSA $12.15 -0.65%
AAPL $94.19 -1.04%
FB $118.06 0.54%
GOOG $695.70 0.48%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs