Comcast (CMCSK) 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 Comcast ( CMCSK) 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:

  • CMCSK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $76.9 million.
  • CMCSK has traded 560,726 shares today.
  • CMCSK traded in a range 214.4% of the normal price range with a price range of $1.32.
  • CMCSK traded below its daily resistance level (quality: 16 days, meaning that the stock is crossing a resistance level set by the last 16 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 CMCSK:

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 1.6%. CMCSK has a PE ratio of 19.9. Currently there is 1 analyst that rates Comcast a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Comcast has been 1.6 million shares per day over the past 30 days. Comcast has a market cap of $24.3 billion and is part of the services sector and media industry. The stock has a beta of 0.76 and a short float of 2.6% with 8.58 days to cover. Shares are up 13.4% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Comcast as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, notable return on equity and attractive valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 31.75% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CMCSK should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • COMCAST CORP has improved earnings per share by 16.9% 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 $2.56 versus $2.29 in the prior year. This year, the market expects an improvement in earnings ($5.91 versus $2.56).
  • Despite its growing revenue, the company underperformed as compared with the industry average of 8.0%. Since the same quarter one year prior, revenues slightly increased by 3.5%. Growth in the company's revenue appears to have helped boost 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.

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Comcast (CMCSK) Showing Signs Of Being Water-Logged And Getting Wetter

Comcast (CMCSK) Showing Signs Of Being Water-Logged And Getting Wetter