Comcast Stock Pullback: A Chance to Ride the Uptrend
Comcast (CMCSA) stock might be a good buy now. Why? Because you get high margins – reflective of pricing power and cash generation capacity – for a discounted price. Companies like this generate consistent, predictable profits and cash flows, which reduce risk and allow capital to be reinvested. The market tends to reward that.
What Is Happening With CMCSA
CMCSA may be down -18% so far this year, but the silver lining is that it is now 24% cheaper based on its P/S (Price-to-Sales) ratio compared to 1 year ago.
The stock may not reflect it yet, but here is what’s going well for the company. While Q3 2025 broadband customer numbers saw a modest decline, average revenue per user continued to expand, supporting margins. Universal Destinations & Experiences significantly boosted revenue and Adjusted EBITDA in Q3 2025, driven by increased attendance and per-guest spending, amplified by the Epic Universe opening. Domestic wireless lines also grew substantially. Management guidance highlights sustained free cash flow generation for 2025, despite the negative year-to-date stock performance.
CMCSA Has Strong Fundamentals
- Recent Profitability: Nearly 25.1% operating cash flow margin and 18.1% operating margin LTM.
- Long-Term Profitability: About 23.2% operating cash flow margin and 18.9% operating margin last 3-year average.
- Revenue Growth: Comcast saw growth of 2.5% LTM and 0.7% last 3-year average, but this is not a growth story
- Available At Discount: At P/S multiple of 0.9, CMCSA stock is available at a 24% discount vs 1 year ago.
Below is a quick comparison of CMCSA fundamentals with S&P medians.
| CMCSA | S&P Median | |
|---|---|---|
| Sector | Communication Services | – |
| Industry | Cable & Satellite | – |
| PS Ratio | 0.9 | 3.3 |
| PE Ratio | 4.8 | 23.7 |
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| LTM* Revenue Growth | 2.5% | 6.1% |
| 3Y Average Annual Revenue Growth | 0.7% | 5.4% |
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| LTM* Operating Margin | 18.1% | 18.8% |
| 3Y Average Operating Margin | 18.9% | 18.3% |
| LTM* Op Cash Flow Margin | 25.1% | 20.4% |
| 3Y Average Op Cash Flow Margin | 23.2% | 20.1% |
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| DE Ratio | 92.0% | 20.9% |
*LTM: Last Twelve Months
Don’t Expect A Slam Dunk, Though
While CMCSA stock may be a compelling investment opportunity, it’s always helpful to be aware of a stock’s history of drawdown. CMCSA slid about 44% in the Dot-Com crash and over 62% during the Global Financial Crisis. The inflation shock in 2022 hit it around 52%. Even the less severe pullbacks like 2018 and the Covid sell-off knocked it down 28% and 31%, respectively. The stock has solid fundamentals, but history shows it’s still vulnerable when markets turn sour.
If you want more details, read Buy or Sell CMCSA Stock.
How We Arrived At CMCSA Stock
CMCSA piqued our interest because it meets the following criteria:
- Greater than $10 Bil in market cap
- High CFO (cash flow from operations) margins or operating margins
- Meaningfully declined in valuation over the past 1 year
But if CMCSA doesn’t look good enough to you, here are other stocks that also check all these boxes:
Notably, a portfolio that was built starting 12/31/2016 with stocks that fulfil the criteria above would have performed as follows:
- Average 12-month forward returns of nearly 19%
- 12-month win rate (percentage of picks returning positive) of about 72%
A Multi Asset Portfolio Beats Picking Stocks Alone
Markets move differently but a mix of assets smooths volatility. A multi asset portfolio keeps you invested and reduces the impact of sharp drops in any single area.
The asset allocation framework of Trefis’ Boston-based, wealth management partner yielded positive returns during the 2008-09 period when the S&P lost more than 40%. Our partner’ strategy now includes Trefis High Quality Portfolio, which has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices