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This entertainment stock will pay big dividends in 2022

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Comcast Corporation (CMCSA) has achieved a strong market position through various strategic collaborations and operational advancements. In addition, the company’s track record of steady dividend growth indicates increasing management confidence in the CMCSA’s prospects. As such, we believe this stock has the potential to be a great buy right now. keep reading.



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Comcast Corporation (CMCSA) is a global media and technology company that connects people to the moments that matter. It has 57 million customer relationships across the US and Europe and is primarily focused on broadband, aggregation and streaming. It offers broadband, wireless and video services through its Xfinity, Comcast Business and Sky brands.

CMCSA will pay a quarterly cash dividend of $0.27 on August 26, 2022. The stock pays an annual dividend of $1.08 per share, yielding a yield of 2.8%. The company’s dividend has grown at a rate of 12% over the past five years. CMCSA has continued to increase his dividend for the second year in a row.

This month, CMCSA announced a strategic partnership with Fortinet (FTNT) is a global leader in broad, integrated and automated cybersecurity solutions, offering enterprises a new set of Secure Access Service Edge (SASE) and Security Service Edge (SSE) solutions, enabling enterprises to leverage cloud-delivered Help protect your distributed workforce through solutions. An approach to security policy enforcement.

This collaboration will expand CMCSA’s managed services expertise and give businesses more flexibility to choose the best cloud architecture and vendor combination.

Here’s what will shape CMCSA performance in the near future:

solid finances

In the second quarter ended March 26, 2022, CMCSA revenue increased 5.1% year-over-year to $30.02 billion. Adjusted EBITDA increased 10.1% from the prior year to $9.83 billion. The company’s net income was $3.39 billion. Adjusted EPS increased 20.2% year-over-year to $1.01.

high profitability

CMCSA trailing 12 months Gross margin of 67.3% is 32.7% higher than the industry average of 50.7%. Also, ROC, net profit margin and ROA are 102.6%, 149.3% and 126.1% higher than their respective industry averages. Additionally, the EBITDA margin of 29.8% is 60.3% higher than the industry average of 18.6%.

discount rating

On a 12-month non-GAAP P/E basis, the stock is currently trading at 10.63x, 41.1% below the industry average of 18.05x. Also, 12-month EV/EBIT was 11.37x, 28.1% lower than the industry average of 15.81x. In addition, CMCSA’s forward price/cash flow of 6.05x is 32.8% lower than the industry average of 9.01x.

impressive growth prospects

Street expects CMCSA’s revenue and EPS to grow 4.6% and 11.5% year-over-year to $121.76 billion, or $3.60 million, in fiscal 2022.

Consensus Ratings and Price Targets Show Potential Upside

Of the 22 Wall Street analysts who rated CMCSA, 12 rated it as Buy and 7 as Hold. The 12-month median target of $46.98 is 21.7% potential upliftPrice targets range from a minimum of $33.00 to a maximum of $60.00.

POWR Rating Reflects Solid Outlook

The overall CMCSA grade is a B. POWR rating system. The POWR Rating is calculated by considering 118 different factors, with each factor being optimally weighted.

Our proprietary rating system also rates each stock based on eight different categories. CMCSA has obtained B grade for quality and stability. Its strong profitability is consistent with its quality grade. The stock beta of 0.91 is in sync with the stability grade.

Of the 9 D-rated Entertainment – ​​TV & Internet Providers In industry stocks, CMCSA ranks #1.

Beyond the above, we evaluated CMCSA on Sentiment, Growth, Value, and Momentum.Get All CMCSA Assessments here.

Conclusion

The company reported strong revenue and profit growth in its last reported quarter. In addition, CMCSA’s strategic collaboration has expanded its market reach.

In addition, cheap valuations and favorable analyst ratings are poised for a short-term surge in stocks. Therefore, we believe this stock has the potential to be a great buy right now.

How does Comcast Corporation (CMCSA) compare to its industry peers?

The CMCSA has an overall POWR rating of B, which equates to a purchase rating. Check out other stocks in the same industry with a B (Buy) rating: Charter Communication Inc. (CHTRMore).


CMCSA shares were trading at $38.22 per share on Tuesday afternoon, down $0.37 (-0.96%). The CMCSA fell -22.74% over the same period, while the S&P 500 Index rose -12.90%.


About the Author: Pragya Pandey

Pragya is an equity research analyst and financial journalist with a passion for investing. In college she majored in finance and currently she is working on the CFA program and is a Level II candidate.

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