NEW YORK (TheStreet) -- Comcast (CMCSA) rose 1.92% to $50.89 at 3:17 p.m. on Wednesday after the cable giant announced Comcast Business announced it was awarded a General Services Administration Schedule 70 contract.
The contract permits the company to sell directly to federal, state and local government customers. The Schedule 70 contract initially applies to Comcast Business Ethernet services, but Comcast plans to expand it to its complete voice product suite, Business Internet and Business TV services.
"Our work with federal, state and local government customers has shown us that bandwidth usage in government agencies is rapidly increasing as technology and constituent programs demand it," said Comcast Business executive director of government Kevin Carney. "Now, federal government agencies can more easily turn to Comcast Business and our Ethernet services for secure, reliable, high-performance connectivity in many regions, including the Washington, D.C. area and other key federal markets."
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TheStreet Ratings team rates COMCAST CORP as a "buy" with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate COMCAST CORP (CMCSA) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, growth in earnings per share, increase in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow."