
How to Trade Comcast Earnings With the Charts on Your Side
Shares of media giant Comcast (CMCSA) - Get Report have gone on a strong run, rising as much as 20% since falling to a January low of $52.34. The stock trades now at $61, up 8% year to date, including 11% gains in the past three months.
Comcast's run is far from over. Buying the stock now could deliver a 5% premium as earnings are released.
Comcast is set to report first-quarter earnings results before the opening bell Wednesday. For the quarter that ended in March, the average analyst earnings-per-share estimate anticipates 79 cents a share on revenue of $18.68 billion, marking a 2% decline in EPS, while revenue is expected to rise 4.4%. For the full year, earnings are projected to climb 8.6% to $3.52 per share, while full-year revenue of $79.06 billion would mark a 6% increase from the year-ago quarter.
Comcast's projections suggests that its fundamentals are solid for the long term.
From a technical perspective, the stock is poised to break resistance levels and looks ready to deliver 5% gains within a week if the trade is timed correctly. Take a look at the black arrow on the chart, courtesy of TradingView.
Technical analysis says the stock should reach $64.50, then breach its 52-week high of $64.99 and move higher from there. The blue arrow shows the bullish trend that Comcast stock has been on since January. The stock was consolidating and making up for some lost ground.
Comcast's 20-day ($58.38) and 50-day ($59.29) moving averages have moved higher in attractive fashion, creating strong areas of support.
Even with the strong gains, the stock is now back at its 200-day moving average, suggesting the shares were consolidating from November. The stock looks ready to regain its November high of $63.21.
Here's how to execute the trade. With Comcast stock currently trading around $61, investors can place a buy-on-close order today, just in case some weak hands want to sell the shares prior to Wednesday morning's earnings announcement. Since Comcast stock has strong downside support, the risk of holding overnight is low.
The earnings results will be out before the market opens Wednesday. While I don't always recommend trading in the pre-and-post market, keep an eye out for any indication of how the market views the results. Place an order to sell at the open if the stock breaks above $63.50, meaning it has a strong chance of reaching $64, for a tidy profit.
This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.










