Comcast stock (NASDAQ: CMCSA) currently trades at $45 per share, about 27% below the peak of $61.75 seen in September 2022, and appears to have some room for gains. Comcast
CMCSA
, which is one of the country’s largest cable TV and internet players, saw its stock trading at around $39 in early June 2022, just before the Fed started increasing rates. Comcast stock has been weighed down by a couple of factors, including slowing growth of the broadband market, after a surge seen through Covid-19, and subscriber losses in cable TV operations. Moreover, Comcast was hurt by mounting competition from wireless carriers, who have been leveraging their newly built 5G networks to offer fixed-wireless broadband services. However, the stock has gained 56% from a low of about $29 on October 11, 2022. The recovery in the stock since October 2022 was driven by a steady decline in U.S. inflation as well as strength in the company’s movie business, following the success of the Super Mario movie and strong attendance at its theme parks.
Interestingly, CMCSA stock has had a Sharpe Ratio of 0.2 since early 2017, lower than the 0.6 figure for the S&P 500 Index over the same period. This compares with the Sharpe of 1.3 for the Trefis Reinforced Value portfolio. Sharpe is a measure of return per unit of risk, and high-performance portfolios can provide the best of both worlds.
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