How Will Comcast (CMCSA) Stock React to Pay-As-You-Go Service?

Comcast (CMCSA) announced Xfinity Prepaid Service, a new pay-as-you-go television and Internet service free of credit checks.
By Rachel Aldrich ,

NEW YORK (TheStreet) -- Comcast (CMCSA) - Get Report  recently announced that it would be starting a new pay-as-you-go television and Internet service without credit checks called Xfinity Prepaid, the Wall Street Journal reports.

The service will allow customers to sign up for a week to a month at a time following a one-time equipment fee, so users can refill their service whenever they want to.

Xfinity Prepaid will be available later this year in Illinois, Michigan, Georgia, Florida and Indiana, and the company said that it plans to extend it to its entire customer base by the end of 2017.

"We want to create an easy, pay-as-you-go option for people who want more flexibility and predictability when buying our service," said Comcast Cable's Executive VP of consumer services Marcien Jenckes.

There are 20 million U.S. households that do not currently pay for television, and 14 million-16 million of that amount cannot pass necessary credit checks for services, according to the Journal.

Shares of Comcast closed down 0.15% to $67.02 yesterday.

(Comcast is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holdings with a free trial.)

Separately, TheStreet Ratings rated this stock as a "buy" with a ratings score of A+.

The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and reasonable valuation levels. TheStreet Ratings feels its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

You can view the full analysis from the report here: CMCSA

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

Loading ...