Communications giant Comcast (CMCSA) might best be known for its cables. But what about the services that do not require such physical connection? Indeed, Comcast is increasingly pivoting to mobile, which has prompted significant gains. And investors were just happy to see the word “gain” crop up somewhere in Comcast’s figures, which in turn led to fractional gains in Wednesday afternoon’s trading.
Comcast’s mobile operations have really started taking off recently. Not even a decade after getting in, Comcast has seen substantial growth, to the point where a MoffettNathanson report noted that about half of all wireless line additions came from a cable provider. And while mobile is catching on in a very big way, most investors are busily watching the numbers coming out of broadband connections.
Jason Armstrong, Comcast’s chief financial officer, pointed out that Comcast is an “incumbent” figure in residential broadband, an $80 billion market in the United States. But it is a “challenger” in the wireless market, which is around 2.5 times the size of residential broadband at $200 billion. And with Comcast rolling out a new Xfinity Mobile service geared toward the higher-end user, the result should be that Comcast will readily find a way to patch its losses from the decline of linear television.
More Trouble in Sports
Meanwhile, Comcast is facing some more trouble in the sports segment, particularly from its ongoing fight with regional sports networks (RSNs). Specifically, the problem of the day is with Chicago Sports Network (CHSN), the home-grown favorite that has the Blackhawks, the White Sox, and the Bulls games all in one place. The duel between the two factions—which some commentators note features both sides “…treat(ing) consumers as thirsting livestock..”—is getting fierce.
The blackout of CHSN is now in its eighth month, reports note, and around one million Chicagoland subscribers are out of luck when it comes to watching Bulls, Blackhawks and White Sox action. And with WGN potentially getting involved as a local telecast operation, the picture only gets more complex and more outright disturbing.
Is Comcast Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on CMCSA stock based on 10 Buys, eight Holds and two Sells assigned in the past three months, as indicated by the graphic below. After a 11.08% loss in its share price over the past year, the average CMCSA price target of $41.68 per share implies 20.43% upside potential.
