Diversification Makes this Industry Leader a Bargain Today

The market’s rally higher this year has been driven largely by tech stocks. While the market has pulled back a bit overall, many companies and sectors have been laggards. There’s still some residual concerns that are now creating a value today.

  • Special: See What One Ticker... One Trade... EVERY WEEK...Can Do for YOU
  • One sector is the media space. Fears of a slowing economy and declining ad spending hit the sector hard last year. So far, it’s been slow to recover. But buying a diversified player here can lead to solid returns.

    Comcast (CMCSA) is an industry leader for the media space.

    And it’s well diversified with a suite of intellectual properties, theme parks, and streaming services. The legacy cable operations also give the company some steady cash flows.

    That’s made the company an outperformer in the media space. That trend is likely to continue.

  • Special: Legendary CBOE Trader Reveals: Make This ONE Trade Every Time The Government Drops Economic Reports
  • Shares go for just 13 times forward earnings, even after Comcast grew those earnings by 25 percent over the past year.

    Action to take: Investors may like shares at current prices or on any drop. Comcast pays a 2.4 percent dividend, with a history of growing that dividend over time.

    For traders, shares have been in an uptrend, and haven’t been hit too hard with the latest market selloff. The October $47.50 calls, last going for about $1.30, could see mid-to-high double-digit gains in the coming months.


    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.

  • Special: See What One Ticker... One Trade... EVERY WEEK...Can Do for YOU