NEW YORK (
) has been reiterated by TheStreet Ratings as a buy with a ratings score of A. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.
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Highlights from the ratings report include:
- CMCSA's revenue growth has slightly outpaced the industry average of 13.4%. Since the same quarter one year prior, revenues rose by 22.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- COMCAST CORP has improved earnings per share by 32.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, COMCAST CORP increased its bottom line by earning $1.51 versus $1.29 in the prior year. This year, the market expects an improvement in earnings ($1.90 versus $1.51).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Media industry average. The net income increased by 29.8% when compared to the same quarter one year prior, rising from $943.00 million to $1,224.00 million.
- Net operating cash flow has increased to $4,393.00 million or 26.67% when compared to the same quarter last year. In addition, COMCAST CORP has also modestly surpassed the industry average cash flow growth rate of 16.92%.
- Powered by its strong earnings growth of 32.35% and other important driving factors, this stock has surged by 27.54% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
Comcast Corporation provides entertainment, information, and communications products and services in the United States and internationally. The company's Cable Communications segment offers video, high-speed Internet, and voice services to residential and business customers. The company has a P/E ratio of 18.9, equal to the average media industry P/E ratioand above the S&P 500 P/E ratio of 17.7. Comcast has a market cap of $64.71 billion and is part of the
industry. Shares are up 30% year to date as of the close of trading on Friday.
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--Written by a member of TheStreet Ratings Staff.
TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.