Comcast (CMCSA) Showing Signs Of Being Water-Logged And Getting Wetter
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
(
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Comcast as such a stock due to the following factors:
- CMCSA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $777.3 million
- CMCSA has traded 6.5 million shares today
- CMCSA traded in a range 274.2% of the normal price range with a price range of $2.03
- CMCSA traded below its daily resistance level (quality: 14 days, meaning that the stock is crossing a resistance level set by the last 14 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal)
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on CMCSA:
Comcast Corporation operates as a media and technology company worldwide. It operates through Cable Communications, Cable Networks, Broadcast Television, Filmed Entertainment, and Theme Parks segments. The stock currently has a dividend yield of 1.7%. CMCSA has a PE ratio of 18.870000000000000994759830064140260219573974609375. Currently there are 14 analysts that rate Comcast a buy, no analysts rate it a sell, and four rate it a hold.
The average volume for Comcast has been 14 million shares per day over the past 30 days. Comcast has a market cap of $128.66 billion and is part of the services sector and media industry. The stock has a beta of 0.88 and a short float of 4.7% with 7.59 days to cover. Shares are up 4.1% year-to-date as of the close of trading on Monday.
Analysis:
rates Comcast as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, notable return on equity, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- Despite its growing revenue, the company underperformed as compared with the industry average of 7.4%. Since the same quarter one year prior, revenues slightly increased by 4.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Media industry and the overall market, COMCAST CORP's return on equity exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has significantly increased by 87.14% to $4,643.00 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 47.67%.
- You can view the full Comcast Ratings Report
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