Comcast (CMCSA) is Valued Way Below What its Worth - Barron's
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Comcast (Nasdaq: CMCSA) is looking strong Friday morning, following bullish comments from Barron's.
Barron's notes that Comcast is growing its land line footprint faster than peers (and yes, Barron's knows demand for landlines is down right now overall. When's the last time a business, big or small, didn't have a land line? Plus, baby boomers anyone?). Further, at current prices, Comcast trades for a forward P/E of 11.2 times, well below peers.
And one analyst doesn't believe that the valuation reflects any of the good news, Barron's notes, viewing Comcast like a coiled spring. Or well-positioned rattlesnake. As soon as value metrics become more normalized, shares should go up in a hurry, he contends.
Another lauds the timing of the NBC Universal deal, saying it provides Comcast to do that same thing that Disney (NYSE: DIS) did with ESPN, already seeing synergies between the Golf Channel and NBC Sports.
While Netflix (Nasdaq: NFLX) and Apple (Nasdaq: AAPL) may be competitors to Comcast in the future, the convenience and variety of cable trump streaming websites currently.
Subscribers are also dedicated, whatever the macro economic conditions. Most forgo canceling cable subscriptions, even during an economic downturn, saying that it is a necessity.
But even in mature markets like the U.S. -- the majority of households that want cable already have it -- Comcast isn't sitting on its hands, looking to maintain and expand margins through better on-demand offerings.
Comcast also has solid vertical integration with NBC Universal, making it insulated from rising television costs.
Some headwinds for Comcast include continued housing slump as well as any pullback in advertising dollars.
Barron's notes that Comcast's earnings have surprised to the upside every year since 2007, showing its ability to weather tough environmental conditions.
Barron's notes that Comcast is growing its land line footprint faster than peers (and yes, Barron's knows demand for landlines is down right now overall. When's the last time a business, big or small, didn't have a land line? Plus, baby boomers anyone?). Further, at current prices, Comcast trades for a forward P/E of 11.2 times, well below peers.
And one analyst doesn't believe that the valuation reflects any of the good news, Barron's notes, viewing Comcast like a coiled spring. Or well-positioned rattlesnake. As soon as value metrics become more normalized, shares should go up in a hurry, he contends.
Another lauds the timing of the NBC Universal deal, saying it provides Comcast to do that same thing that Disney (NYSE: DIS) did with ESPN, already seeing synergies between the Golf Channel and NBC Sports.
While Netflix (Nasdaq: NFLX) and Apple (Nasdaq: AAPL) may be competitors to Comcast in the future, the convenience and variety of cable trump streaming websites currently.
Subscribers are also dedicated, whatever the macro economic conditions. Most forgo canceling cable subscriptions, even during an economic downturn, saying that it is a necessity.
But even in mature markets like the U.S. -- the majority of households that want cable already have it -- Comcast isn't sitting on its hands, looking to maintain and expand margins through better on-demand offerings.
Comcast also has solid vertical integration with NBC Universal, making it insulated from rising television costs.
Some headwinds for Comcast include continued housing slump as well as any pullback in advertising dollars.
Barron's notes that Comcast's earnings have surprised to the upside every year since 2007, showing its ability to weather tough environmental conditions.
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