![]() ![]() Morningstar’s Matthew Dolgin agrees that shares are significantly mispriced. This creates a bargain opportunity as analysts expect the company to return to strong profitability in 2024, with shares going at just 8 times next year’s projected earnings. Despite that, ERIC stock is now down more than 25% over the past year. It’s no secret that telecom companies have been in a down part of their spending cycle recently, and the recent results shouldn’t come as a big surprise. It offered a similarly downbeat outlook for the third quarter while noting that it expects business to pick up strongly in Q4. The company announced a surprise loss in the face of weak demand and lower profit margins. The firm plays a large role in the roll-out of new and improved infrastructure, such as 5G networks.ĮRIC stock plunged recently following its weak second-quarter earnings results. Morningstar’s Michael Hodel believes CMCSA shares are worth $60, which puts them at a 30% discount to fair value today.Įricsson (NASDAQ: ERIC ) is a leading provider of telecom equipment used to build and operate mobile networks. All told, however, this all appears to be baked into the stock price. Theme parks could also face a slowdown when consumer spending slows. There is more uncertainty around the media business with the difficult economics that the streaming industry has seen to date. A high-quality internet is a key consumer staple good, and Comcast is locking in attractive long-term cash flows with these market share gains. According to Morningstar estimates, Comcast has grown its market share from 50% to 67% for broadband in the markets where it serves. However, Comcast has generally done a better job of avoiding social controversies and boycotts, which have helped lead to dramatic underperformance in Disney stock in recent years.Ĭomcast’s greatest strength has been in its internet business. In some ways, Comcast shares many similarities with The Walt Disney Company (NYSE: DIS ). It also has a large television operation, and it runs theme parks. The core business is in its cable assets. Merport / Ĭomcast (NASDAQ: CMCSA ) is a large diversified telecom and media company. No cash balance or cash flow is included in the calculation.Source: Todd A. Please note all regulatory considerations regarding the presentation of fees must be taken into account. Backtested results are adjusted to reflect the reinvestment of dividends and other income and, except where otherwise indicated, are presented gross-of fees and do not include the effect of backtested transaction costs, management fees, performance fees or expenses, if applicable. Actual performance may differ significantly from backtested performance. Further, backtesting allows the security selection methodology to be adjusted until past returns are maximized. Since trades have not actually been executed, results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity, and may not reflect the impact that certain economic or market factors may have had on the decision-making process. ![]() Specifically, backtested results do not reflect actual trading or the effect of material economic and market factors on the decision-making process. Backtested performance is developed with the benefit of hindsight and has inherent limitations. This information is provided for illustrative purposes only. No representations and warranties are made as to the reasonableness of the assumptions. Certain assumptions have been made for modeling purposes and are unlikely to be realized. Changes in these assumptions may have a material impact on the backtested returns presented. General assumptions include: XYZ firm would have been able to purchase the securities recommended by the model and the markets were sufficiently liquid to permit all trading. Backtested results are calculated by the retroactive application of a model constructed on the basis of historical data and based on assumptions integral to the model which may or may not be testable and are subject to losses. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. ![]() Backtested performance is not an indicator of future actual results. Disclaimer: The TipRanks Smart Score performance is based on backtested results. ![]()
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