This is another broadcasting-related stock that could have solid upside potential. Comcast Corp. (NASDAQ: CMCSA) is one of the nation’s largest video, high-speed internet and phone provider to residential customers under the XFINITY brand and also provides these services to businesses. Comcast has invested in technology to build an advanced network that delivers among the fastest broadband speeds and brings customers personalized video, communications and home management offerings.
Comcast has consistently been growing earnings substantially with extremely strong content revenue growth. Increased revenue at NBC Universal is also giving the company some earnings tailwinds, and a growing sports lineup is adding to revenues.
Some top Wall Street analysts see cable giants like Comcast as a top growth story that still has plenty of room to run, as well as generating solid earnings to support continued stock buybacks.
Comcast investors receive a 1.7% dividend. The consensus price objective is $75.58. Comcast closed trading on Monday at $61.82.
This top consumer media company has multiple streams of income to push revenue. Walt Disney Co. (NYSE: DIS) is down for the year and may be offering investors the best entry point in some time. With the movie studio business poised to improve, as with accelerating theme park business, the network programming continues to drive viewership with extensive sports programming. Combining that revenue growth with the company’s solid media networks and interactive presence, and 2017 revenue estimates could be conservative.
The Disney Media Networks segment operates broadcast and cable television networks, domestic television stations and radio networks and stations, and it is involved in the television production and television distribution operations. Its cable networks include ESPN, Disney Channels and ABC Family, as well as UTV/Bindass and Hungama. This segment also owns eight domestic television stations. Disney is also one of 24/7 Wall St. top ten stocks to own for the next decade.
Disney shareholders receive a 1.51% dividend. The consensus price objective is $107.04. Shares closed at $92.69.
This top telecommunications company is also discounted and offers a big dividend. Verizon Communications Inc. (NYSE: VZ) is a global leader in delivering the digital world. Verizon Wireless operates America’s self-described most reliable wireless network, with 109.5 million retail connections nationwide. Verizon also provides converged communications, information and entertainment services over America’s most advanced fiber-optic network, and it delivers integrated business solutions to customers worldwide.
The company reported solid third-quarter earnings; however, revenues came in short of Wall Street and Merrill Lynch expectations. Verizon also recently announced the purchase of Yahoo’s core operating business for $4.8 billion in cash. The analysts feel it plays into Verizon’s strategic drive to expand into advertising and content, and they also think the transaction is largely immaterial from a financial perspective.
Verizon investors receive a 4.8% dividend. The consensus price objective is $53.48. The shares closed Monday at $48.10.
One way or another, it looks like the big deals involving telecom and media could continue to be forthcoming. Even if the AT&T and Time Warner deal falls through, you can bet other companies will be looking to combine content with communications services.