Comcast Corporation
CMCSAComcast Corp operates in the cable and pay television services industry.
It is a global media and technology leader, distinguished by its extensive broadband network and ownership of major content assets like NBCUniversal.
Updated: January 16, 2026, 16:00 EST
Investment Opinion: Should I buy CMCSA Today?
Of course. Here is a comprehensive analysis of whether CMCSA is worth buying.
Technical Analysis CMCSA shows signs of being oversold, trading near its 52-week low after a significant decline. While there is recent positive momentum, the stock has struggled against the broader market. This weak trend suggests caution, but the current price level may offer an attractive entry point for value-oriented investors looking for a potential rebound.
Fundamental Analysis Financially, CMCSA is a stable giant with moderate revenue growth but faces clear profitability pressures, as seen in its declining net income. The company maintains a reasonable debt level, but its low cash reserves are a concern. Operational efficiency is adequate, though there is room for improvement in how effectively it uses its assets to generate profits.
Valuation & Risk The stock appears deeply undervalued, trading at very low earnings and sales multiples. This discount, however, reflects market skepticism about its future growth, a primary risk. Additional risks include its exposure to competitive telecom and media sectors and its demonstrated susceptibility to sharp price drops.
Investment Recommendation Based on the analysis, CMCSA presents a compelling case for value investors. Its significant undervaluation and oversold technical condition suggest substantial upside potential if the company can stabilize its profitability. While near-term growth headwinds and sector competition persist, the current price offers a favorable risk-reward profile for a long-term, contrarian position. For investors seeking a stable, large-cap stock at a discount, CMCSA is worth considering.
*Note: This is not investment advice, for reference only.*
CMCSA 12-Month Price Forecast
RockFlow Model Forecast: Three Scenarios for 2026
Here is a 12-month outlook for Comcast Corporation (CMCSA):
Based on the provided analysis, the 12-month outlook for CMCSA is cautiously optimistic, contingent on its ability to navigate ongoing sector challenges. Key catalysts for a potential rebound include its deeply undervalued valuation, which could attract value investors, and any strategic moves that successfully stabilize its profitability and address market skepticism about its growth prospects. Potential risks remain significant, primarily heightened competition in both telecom and media, persistent profitability pressures, and the stock's history of sharp price declines which could continue if earnings disappoint. While a specific analyst target is not provided, the current depressed price near 52-week lows suggests a potential target range of $32-$38 is plausible if the company can demonstrate improved operational efficiency and a clearer path to earnings growth, offering a favorable risk-reward profile for patient investors.
Wall Street Consensus
Most Wall Street analysts are optimistic about Comcast Corporation's 12-month outlook, with consensus target around $27.82, indicating expected upside potential.
Bulls vs Bears: CMCSA Investment Factors
Overall, CMCSA has investment potential but also faces challenges. Here are key factors to weigh before investing.
Bullish
- Analyst Upgrade: BofA upgraded Comcast citing undervalued assets and future confidence.
- High Margin Business: Strong pricing power and cash generation from high-margin operations.
- Spinoff Completion: Stock rose following the successful spinoff of its cable networks.
- Positive Expert Opinion: Jim Cramer expressed a favorable view of Comcast stock.
Bearish
- Broadband Subscriber Losses: Lost 104,000 broadband customers, fourth consecutive quarter of decline.
- Analyst Price Target Cuts: Series of analyst price target reductions pressured the stock.
- Stock Price Decline: Shares fell 3% due to analyst concerns and broadband pressures.
- Cooling Business Momentum: Facing pressure from a cooling business environment.
CMCSA Technical Analysis
Of course. Here is the technical analysis of CMCSA's price performance:
Overall Assessment CMCSA exhibits a mixed technical picture, showing resilience in the very short term but significant underperformance against the broader market over a three-month horizon.
Short-term Performance The stock has posted a modest 1-month gain of 3.19%, suggesting recent positive momentum. However, this is overshadowed by a 3-month decline of -5.32%, which indicates that the stock has struggled to maintain upward traction. More critically, its relative strength versus the market is negative (-8.69%), confirming it has significantly underperformed the market benchmark during this period.
Current Position Trading at $28.48, CMCSA's price sits much closer to its 52-week low of $25.75 than its high of $38.40, positioning it in the lower quartile of its annual range. Given this proximity to the low and the substantial 1-year maximum drawdown of -30.79%, the stock appears to be in an technically oversold condition, indicating potential for a rebound, though the prevailing trend remains weak.
| Period | CMCSA Return | S&P 500 |
|---|---|---|
| 1m | -6.4% | +1.9% |
| 3m | -7.2% | +4.4% |
| 6m | -20.5% | +10.9% |
| 1y | -23.9% | +15.7% |
| ytd | -5.8% | +1.2% |
CMCSA Fundamental Analysis
Revenue & Profitability CMCSA's Q3 revenue grew moderately to $31.2 billion from $30.3 billion in Q2, though net income declined significantly from $11.1 billion to $3.3 billion quarter-over-quarter. The company maintains solid gross margins near 59-61%, but operating margins compressed to 17.7% in Q3 due to higher operating expenses. This volatility in bottom-line performance suggests margin pressures despite stable top-line growth.
Financial Health The company shows moderate leverage with a debt-to-equity ratio of 1.02 and total debt-to-capitalization of 50.5%, indicating balanced capital structure. However, liquidity metrics raise concerns with a current ratio below 1 (0.88) and weak cash flow-to-debt ratio of 0.09. Interest coverage remains adequate at 4.9x, but the low cash ratio (0.29) suggests limited cash buffer relative to liabilities.
Operational Efficiency CMCSA demonstrates modest efficiency with ROE of 3.4% and asset turnover of 0.11, indicating room for improvement in capital utilization. The negative cash conversion cycle (-44.9 days) reflects strong working capital management, allowing the company to fund operations through supplier credit. Fixed asset turnover of 0.48 suggests moderate efficiency in utilizing long-term assets to generate revenue.
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
RockFlow Bobby - Your AI Investment Partner
Get real-time data, AI-driven personalized investment analysis to make smarter investment decisions
Try Now & Get Tesla Stock RewardValuation Analysis: Is CMCSA Overvalued?
Valuation Level
CMCSA appears significantly undervalued based on traditional price-based multiples. Its trailing PE of 4.66 and forward PE of approximately 8.8 are exceptionally low, suggesting the market is pricing the stock at a substantial discount to its earnings. Furthermore, the price-to-sales ratio of 0.84 and price-to-book ratio of 1.07 indicate the stock is trading close to or below the value of its underlying assets and revenue stream, reinforcing the case for undervaluation. However, the negative PEG ratio of -0.125 signals negative earnings growth expectations, which is a critical counterpoint to the attractive absolute valuation levels.
Peer Comparison
A direct comparison against precise industry averages is not possible due to the unavailability of that specific data. Nevertheless, CMCSA's valuation metrics are compelling on a standalone basis. The single-digit PE ratios and sub-1.0 PS ratio are typically associated with deeply discounted or value-oriented stocks, especially within the often capital-intensive communications sector. Without industry benchmarks, the analysis relies on the principle that such low multiples are generally attractive, but the negative growth outlook implied by the PEG ratio remains a significant risk factor that warrants careful consideration relative to sector peers.
Investment Risk Disclosure
Volatility risk for CMCSA appears moderate relative to the market, as indicated by a Beta of 0.807 suggesting lower volatility. The stock has, however, experienced a significant 1-year maximum drawdown of -30.79%, highlighting its susceptibility to substantial price declines during market downturns, which is a notable risk for investors.
Other risks appear subdued, particularly with no reported short interest indicating minimal speculative pressure for a near-term price drop. While its large market capitalization suggests adequate liquidity for most investors, the primary risk remains its exposure to competitive and regulatory pressures within the telecommunications and media sectors, which could impact future earnings stability.
FAQs
I hold a neutral view on CMCSA. The stock appears fundamentally undervalued with low P/E and P/B ratios, offering a margin of safety. However, this is countered by declining broadband subscribers, net income volatility, and cautious analyst sentiment. It may appeal to patient, value-oriented investors willing to wait for a potential turnaround, but near-term headwinds create significant uncertainty.
Based on traditional valuation metrics, CMCSA appears undervalued. Its extremely low trailing P/E of 4.66 and forward P/E of 8.8, along with a P/S ratio of 0.84, are well below typical market and industry averages, suggesting the stock is priced at a significant discount to its earnings and sales. However, this deep value is tempered by a negative PEG ratio, which signals that the market has very low or negative earnings growth expectations, likely due to the recent significant decline in net income and margin pressures noted in the fundamental analysis.
Based on the provided information, here are the key risks of holding CMCSA:
1. Industry Competition and Regulatory Pressures: CMCSA faces persistent risks from intense competition and potential regulatory changes within the telecommunications and media sectors, which could directly impact its pricing power and future earnings stability. 2. Weak Profitability and Significant Margin Compression: A substantial quarter-over-quarter decline in net income, coupled with compressed operating margins, indicates vulnerability to rising costs and potential volatility in bottom-line performance despite steady revenue. 3. Limited Liquidity Buffer: The company's low current ratio and cash ratio suggest a constrained ability to cover short-term obligations, increasing financial risk if faced with unexpected expenses or a downturn in operating cash flow. 4. Sustained Negative Price Momentum: The stock's significant underperformance against the market and its position near 52-week lows reflect weak investor sentiment and technical weakness, indicating a risk of continued price declines.
Of course. Here is a professional forecast for Comcast Corporation (CMCSA) stock performance through 2026.
**CMCSA Stock Forecast through 2026**
The forecast for CMCSA is one of steady, moderate growth, anchored by its core cash-generative businesses but tempered by the capital-intensive nature of its industries and secular challenges in linear media.
1. Target Price Range: * Base Case (2026): $42 - $48. This assumes steady execution, modest broadband subscriber growth, continued theme park recovery, and a gradual managed decline in linear TV. * Bull Case (2026): $55 - $65. This scenario requires successful execution on key growth drivers, leading to accelerated broadband net additions, a major turnaround in Peacock profitability, and significant shareholder returns via buybacks.
2. Key Growth Drivers: * Stabilization & Monetization of Broadband: Successfully moving customers to higher-priced plans (like X-Class tiers) and monetizing heavy data users to offset potential subscriber saturation. * Peacock's Path to Profitability: Achieving sustained subscriber growth and, critically, significantly reducing the streaming service's substantial losses, which would be a major catalyst for investor sentiment. * Free Cash Flow Generation & Capital Return: The company's ability to continue generating robust free cash flow to fund growth initiatives, reduce debt, and increase dividends and share repurchases.
3. Main Assumptions: * Stable pricing environment for broadband with no major new regulatory headwinds. * A "soft landing" for the economy, avoiding a deep recession that could pressure consumer and advertising spending. * Management successfully executes its strategy to contain losses in the Media division while growing connectivity and parks.
4. Uncertainty of the Forecast: * This forecast is highly sensitive to the competitive landscape, particularly from fixed wireless access (FWA) providers and fiber overbuilders. * The performance of Peacock and the linear TV advertising market are significant variables that could materially alter the trajectory. * Macroeconomic factors, including interest rates and consumer sentiment, present substantial upside and downside risks.