Comcast Corporation (CMCSA): A Bull Case Theory

We came across a bullish thesis on Comcast Corporation on Lame’s Substack. In this article, we will summarize the bulls’ thesis on CMCSA. Comcast Corporation's share was trading at $33.81 as of August 27^th. CMCSA’s trailing and forward P/E were 5.61 and 7.97 respectively according to Yahoo Finance.

Comcast Corporation stands as a diversified media and telecommunications giant, touching nearly every facet of consumer life—from high-speed internet and mobile services to streaming content, films, and theme parks. Its largest revenue stream, broadband internet under the Xfinity brand, anchors the company with recurring, high-margin subscription revenue, even as traditional cable TV declines. Comcast has successfully leveraged this connectivity dominance to grow in wireless, reaching 7.5 million Xfinity Mobile lines by late 2024.

The content side, via NBCUniversal and Sky, contributes around one-third of revenue through media networks, film studios, and international platforms, while its streaming service Peacock has rapidly grown to over 36 million subscribers. Though still operating at a loss, Peacock is a strategic long-term bet, with its ad-supported model aligning with Comcast’s advertising strengths. Comcast’s Universal theme parks have emerged as a key growth driver, with nearly $9 billion in 2023 revenue and the major Epic Universe expansion planned for 2025.

Financially, Comcast is strong—generating $16.2 billion in 2024 net income, over $5 billion in quarterly free cash flow, and maintaining investment-grade credit despite a sizeable debt load. Strategic investments in broadband upgrades and content are fueling future growth, while divestments like the planned Hulu stake sale will add cash flexibility. The company also excels in capital returns, with $15 billion in buybacks authorized and a growing dividend yielding ~4%. With a current P/E under 8x and a conservative fair value estimate of $55–$60 per share, Comcast offers compelling upside, driven by stable cash flows, strategic execution, and shareholder-friendly policies.

Previously we covered a bullish thesis on Comcast Corporation by Boyar Research in February 2025, which highlighted undervaluation, strong free cash flow, and expanding wireless growth. The company’s stock has depreciated by 6.85% since then due to broadband subscriber losses. The thesis still stands as infrastructure investments support long-term upside. Lame shares a similar view but emphasizes Peacock and theme parks as key drivers.

Comcast Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 81 hedge fund portfolios held CMCSA at the end of the first quarter which was 80 in the previous quarter. While we acknowledge the potential of CMCSA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.