Comcast CMCSA is benefiting from robust growth in its broadband subscriber base and strong momentum in the wireless business.
The strategy to provide high-speed internet at an affordable price is anticipated to play a pivotal role in providing connectivity and enhancing customer experience.
Comcast recently announced the launch of its next-generation xFi Advanced gateway that incorporates WiFi 6E in the United States.
The new gateway will offer customers an enhanced broadband experience with a faster and more reliable wireless connection.
The device has three WiFi bands — 2.4 GHz, 5GHz and 6GHz — which will reduce interference and increase bandwidth three times in the home to support the massive influx of connected devices used by consumers.
Comcast Corporation Price and Consensus
Comcast Corporation price-consensus-chart | Comcast Corporation Quote
Broadband Services to Drive the Top Line
The coronavirus has been a tailwind to Comcast’s broadband business. The company delivers broadband services through its Xfinity, Comcast Business and Sky brands.
Comcast had invested voraciously in developing artificial intelligence (AI) and machine learning (ML) technologies, which helped it manage the network capacity increases easily amid the pandemic.
In 2021, Comcast’s Sky had launched its fastest broadband package, Ultrafast Plus, in the U.K.
The new package is delivered only through Fiber to the Premises (FTPP) and connects seamlessly with multiple devices.
Total customer relationships increased by 255,000 to 34 million in third-quarter 2021. Total broadband customer net additions were 300,000 in the last reported quarter.
In the third quarter, Cable Communications, which comprises the operations of Comcast Cable, delivered revenues of $16.12 billion, up 7.4% year over year. Comcast Cable offers broadband, voice, video and wireless, business services, advertising and other services in the United States.
Broadband revenues increased 11.6% year over year to $5.801 billion, owing to an increase in the number of residential broadband customers and higher average rates.
Zacks Rank and Stocks to Consider
Currently, Comcast has a Zacks Rank #3 (Hold).
Comcast’s shares have dropped 0.7% against the Zacks Cable Television industry’s return of 1.8% and the Consumer Discretionary sector’s decline of 10.1% year to date.
Some of the better-ranked stocks in the Zacks Consumer Discretionary sector are Funko FNKO and WillScot Mobile Mini WSC, both sporting a Zacks Rank #1 (Strong Buy), and Netflix NFLX carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Funko, engaged in manufacturing a wide range of consumer products, has a trailing four-quarter earnings surprise of 110.7%, on average.
The Zacks Consensus Estimate for Funko’s current financial year sales and earnings per share (EPS) suggests an increase of 48.25% and 240.54%, respectively, from the year-ago period’s tallies.
WillScot Mobile Mini, a company dealing with modular space and portable storage and tank solutions, has a trailing four-quarter earnings surprise of 7.32%, on average.
The Zacks Consensus Estimate for WillScot Mobile Mini’s current financial year sales and EPS suggests an increase of 37.10% and 95.12%, respectively, from the year-ago period’s tallies.
Netflix has a trailing four-quarter earnings surprise of 7.67%, on average.
The Zacks Consensus Estimate for Netflix’s current financial year sales and EPS suggests an increase of 18.84% and 76.64%, respectively, from the year-ago period’s tallies.
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Comcast Corporation (CMCSA): Free Stock Analysis Report
Netflix, Inc. (NFLX): Free Stock Analysis Report
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Funko, Inc. (FNKO): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.