Comcast Corporation (CMCSA): A Bull Case Theory

We came across a bullish thesis on Comcast Corporation on Waterboy Stocks’s Substack. In this article, we will summarize the bulls’ thesis on CMCSA. Comcast Corporation's share was trading at $26.58 as of December 1st. CMCSA’s trailing and forward P/E were 4.42 and 6.50 respectively according to Yahoo Finance.

Comcast Corporation (CMCSA), the Philadelphia-based cable and media giant, operates two core segments: “Connectivity & Platforms,” contributing 62% of revenue and 82% of adjusted EBITDA, and “Content & Experiences,” which makes up the rest. Connectivity remains Comcast’s mainstay, serving 32 million Americans through its vast hybrid fiber and coaxial network, making it the nation’s largest broadband provider.

However, the segment’s once-dominant moat has eroded due to intensifying competition from peers such as Charter’s Spectrum and wireless 5G providers like AT&T and Verizon. Subscriber growth has stalled since 2020, flattening connectivity revenue around $81 billion and halving the stock, reflecting weakened pricing power and consumer dissatisfaction. Long-term customers cite poor service and limited loyalty rewards, exemplified by a widely circulated complaint that underscores the need for strategic change.

In response, Comcast is spinning off most of NBCUniversal’s legacy cable networks into a new entity, “Versant” (VSNT), while leaning on streaming and digital initiatives. Peacock, its streaming platform, now counts 36 million subscribers and grew revenue 44.1% to $4.9 billion in 2024, helping lift total media revenue 10.6% to $28.1 billion, even as studio and theme park revenues dipped modestly.

Despite tepid top-line growth of 1.8% to $123.7 billion, Comcast remains a free cash flow powerhouse, generating $16.3 billion last year, returning nearly all via $11.3 billion in buybacks and $4.8 billion in dividends. With net debt to EBITDA at 2.64x, a 14.8% free cash flow yield, and a 4.4% dividend yield, Comcast’s steady capital return profile offers solid value despite limited growth momentum.

Previously we covered a bullish thesis on Comcast Corporation (CMCSA) by Boyar Research in February 2025, which highlighted undervaluation and upside potential from its network spin-off. The stock has since depreciated about 26.77% as subscriber losses and competition persisted. The thesis still stands given strong cash generation. Waterboy Stocks shares a similar view but stresses capital returns and balance sheet strength.

Comcast Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 82 hedge fund portfolios held CMCSA at the end of the second quarter which was 81 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.