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

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 $127.9 million.
  • CMCSK has traded 554,132 shares today.
  • CMCSK traded in a range 232.4% of the normal price range with a price range of $2.00.
  • CMCSK traded below its daily resistance level (quality: 12 days, meaning that the stock is crossing a resistance level set by the last 12 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 22. 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 4.6 million shares per day over the past 30 days. Comcast has a market cap of $23.0 billion and is part of the services sector and media industry. The stock has a beta of 0.88 and a short float of 5.1% with 15.59 days to cover. Shares are up 8.3% year-to-date as of the close of trading on Monday.

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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 revenue growth, solid stock price performance, growth in earnings per share, increase in net income and attractive valuation levels. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • CMCSK's revenue growth has slightly outpaced the industry average of 6.8%. Since the same quarter one year prior, revenues rose by 11.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • COMCAST CORP has improved earnings per share by 10.5% 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 $3.20 versus $2.56 in the prior year. This year, the market expects an improvement in earnings ($6.55 versus $3.20).
  • 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 7.3% when compared to the same quarter one year prior, going from $1,992.00 million to $2,137.00 million.

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