Summary
- Comcast has appreciated significantly since I wrote my last article on the company in April. Today, I revisit the Comcast thesis and see whether the company is a good investment.
- Comcast has reported 2Q20, and results were good.
- Comcast remains, as I see things, a "BUY", albeit with a quickly slimming upside of now less than 10%.
Comcast (NASDAQ:CMCSA) was a company I began investing and pushing capital into on a frequent basis when COVID-19 materialized more and dropped markets in quick succession. Since my first article back in April of 2020, I've expanded my position in the media/communications company to a decent size, and part of the thesis of the company being drastically undervalued has already materialized in 20-25% gains.
In late July, the company reported 2Q20 results. These results should be considered somewhat indicative of where the company goes for the remainder of the year.
While the picture seems positive, let's do a deeper dive into results and company valuation.
Comcast - How has the company been doing?
I'm quick to remind people, particularly non-Americans, that Comcast is in fact the second-largest broadcasting and cable television company on our blue & green planet - and that's not even mentioning that they're the largest ISP in the USA, as well as the largest pay-TV operator.
A quick reminder for Comcast business areas, which include:
- The mobile service provider Xfinity Mobile.
- The broadcast network channels NBC, Telemundo, TeleXitos, and Cozi TV.
- Cable channels such as MSNBC, CNBC, Syfy, USA Network, NBCSN, and E!
- The film studio Universal Pictures
- Universal Parks & Resorts
- The European Sky Group, making it the largest European media company in terms of subscribers in five countries.
I view it as crucial to remind of this, because at least non-American readers don't often know what Comcast actually is - or if they've heard the name, they don't know that they own things like CNBC, Universal, Sky, etc.
In my initial article, I pointed out that all three of the company's reportable segments are working well and delivering profitable, impressive results despite the initial impacts and expectations of a pandemic. So are the trends which have continued into 2Q20. In fact, we're seeing:
