This broadcasting-related stock could have continued solid upside potential. Comcast Corp. (NASDAQ: CMCSA) is the largest U.S. provider of cable services, with over 22 million basic subscribers. It owns NBCU, which includes the NBC TV Networks, Telemundo, MSNBC, USA, Syfy, Bravo, E!, CNBC and several other cable networks, as well as Universal Films and Universal Theme Parks.
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. The company reported very solid second-quarter results, and the analysts noted at the time:
Comcast reported quarterly earnings that beat Wall Street expectations but missed slightly on revenue. The media giant’s subscriber losses deepened during the third quarter. The company announced several “smart-home” offerings in August amid a push to diversify beyond its cable options.
Investors in Comcast receive a 1.77% dividend. The $47 Jefferies price objective compares with the consensus target of $45.23 and the most recent close at $35.54 per share.
This is a solid stock for conservative investors looking for growth and income. Conagra Brands Inc. (NYSE: CAG) is a leading packaged food manufacturer in the United States that generated fiscal 2016 sales of $8.2 billion. Conagra’s operating segments are Consumer Foods and Commercial Foods. Key brands include Healthy Choice, Hebrew National, Chef Boyardee and Hunt’s.
The stock looks cheap to the Jefferies analysts and trades at a large discount to the company’s large cap peers. A report earlier this year said:
The stock has underperformed year-to-date falling over 12% as takeout premiums in food have dwindled and following the fiscal 2018 guidance. We believe the market is concerned by the slowdown in margin expansion but we believe guidance will wind up being conservative as it was last year and we see other drivers of margin including new products, trade productivity savings, etc.
Shareholders are paid a solid 2.55% dividend. Jefferies has a $40 price target. The consensus target is $39.64, and the stock last seen at $33.32 per share.
The current rage for energy drinks won’t be ending any time soon and this company is a leader. With more than $3 billion in sales, Monster Beverage Corp. (NASDAQ: MNST) is an alternate beverage company focusing primarily on the energy drink segment. Approximately 75% of sales are in the United States, and the company has two primary operating segments focused on finished goods and concentrates.
It’s important to remember though that Coca-Cola owns 16.7% of Monster Beverage, and the purchase back in 2015 made the Coke the company’s primary distributor in the United States and gave Monster access to the soft drinks giant’s distribution system in international markets. There always remains a possibility Coke could acquire the entire company as well.
The Jefferies price target is $65, and the consensus target is $58.41. The stock closed most recently at $50.52.
Shares of these five top companies are priced at value levels. They make good sense for more conservative accounts that are still looking for growth via the equity markets. Given some of the underperformance in these companies, most are offering good entry points at current trading levels.