Day Movers

Comcast Corporation (CMCSA): Examining the Technicals

The recent development in Comcast Corporation (NASDAQ:CMCSA) stock have made investors to juggle around with their spending. At the end of the day, it’s only a stock’s performance that matters. With this in mind, it’s worth taking a look at the chart to get a sense of where it might be headed in the future.

How has the stock performed recently?

Comcast Corporation (NASDAQ:CMCSA) in the last month has increased +2.33%. Shares are now up over the past year, outperforming the broad market by -100% and underperformed a peer group of similar companies by -237%. After the latest session, which saw the stock close at a price of $36.85, CMCSA sits below its 52-week high. Comcast Corporation (NASDAQ:CMCSA) has been trading in a bearish manner, based on the relative positions of the stock’s 20 and 200 day moving averages.

Momentum indicators

Of course, these surface-level price movements don’t tell us much about the direction that CMCSA may be headed in the future. If we want to get a sense of CMCSA’s future performance, we have to look at the speed and size of these price movements. Using what are known as momentum indicators, we can use the stock’s price momentum to get a sense of whether the stock is in the midst of, or nearing the end of, a current trend. Two such indicators are the RSI (Relative Strength Index) and the Stochastic %k Oscillator, which fluctuate on a scale of 0 to 100. A reading above 70 indicates that a stock is overvalued, and a reading below 30 implies that it is undervalued. The 20-day RSI for CMCSA is 48.76%, which suggests that the stock is not particularly expensive or cheap, and not predisposed to a reactive price movement based on this measure. The 20-day Stochastic %k measure, which sits at 70.24%, tells a different story, and suggests that CMCSA currently trades in overbought territory.

What do the trading volumes reveal?

Volume patterns can also be useful for predicting future performance. When trading activity is abnormally high, it’s often a sign that the market feels particularly strong in one way or another about the future direction of a stock. Comcast Corporation (CMCSA) average trading volume of 27,547,266 during the past month is 41.5% above its average volume over the past year, indicating that investors have been more active than usual in the stock in recent times.

What do the analysts think?

CMCSA is currently undervalued by -18.53% relative to the average 1-year price target of $45.23 taken from a group of Wall Street Analysts. The average investment recommendation on a scale of 1 to 5 (1 being a strong buy, 3 a hold, and 5 a sell) is 1.70, which implies that analysts are generally bullish in their outlook for CMCSA over the next year.

How risky is the stock? 

No study on the valuation of a stock is complete without taking into account risk. When analyzing the systematic risk associated with a stock, analysts look at beta, which measures the stock’s volatility relative to the overall market.

Comcast Corporation (NASDAQ:CMCSA) has a beta of 1.01, compared to a beta of 1 for the market, which implies that the stock’s price movements are more extreme than the market as a whole. CMCSA therefore has a above average level of market risk. During the past couple of weeks, CMCSA average daily volatility was 20.81%, which is 0.24 percentage points lower than the average volatility over the past 100 days.

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