2024-03-25 04:21:32 ET
Summary
- Comcast is a Communication Services' giant with a stretched valuation and low growth rates.
- The company operates in Connectivity & Platforms and Content & Experiences, with the former forming the majority of revenues.
- CMCSA has strong performance in the past year, but it is expected to experience multiple contraction.
Investment Thesis
A Communication Services' giant that can't sustain its current valuation. 1-year performance has been strong with Comcast Corporation ( CMCSA ) rallying 22.5% against the S&P 500 ( SPX ) that returned 28% over the same period. But I think this relatively strong performance is behind the company and the current valuation feels stretched. I think the end of the Affordable Connectivity Program and the recent loss in customers will hinder broadband revenue growth going forward and the current valuation feels lofty....
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Comcast: Lofty Valuation And Low Forward Growth Rates