Comcast Unveils 5-Year Xfinity Guarantee Plan: How to Play the Stock

Comcast CMCSA recently introduced a five-year price guarantee for new Xfinity Internet customers. The nationwide offer includes unlimited data and a high-performance WiFi gateway for a flat monthly rate starting at $55. With no annual contract required, the rate remains locked in for five years, and customers can cancel at any time without facing penalties.

The price guarantee is part of Xfinity’s broader push to provide transparent, consistent pricing across the country while enhancing the value of its high-speed Internet services. It aims to address common customer concerns around rising costs and pricing complexity. Customers who bundle Xfinity Internet with mobile services also benefit from automatic gig-speed connections through the provider’s converged network.

Why Comcast’s New Plan Deserves Attention

Comcast shares have lost 10.6% in the year-to-date period, underperforming the Zacks Consumer Discretionary sector, the S&P 500 index and the Zacks Cable Television industry’s decline of 9.7%, 8.6% and 5.6%, respectively.

The company’s broadband prospects are suffering from increased competition from fixed wireless and fiber businesses like AT&T T, Verizon Communications VZ and TMobile US TMUS. AT&T and Verizon Communications are capitalizing on the 5G boom and T-Mobile’s acquisition strategy has significantly strengthened its position in the wireless industry over the past few years. Shares of AT&T, Verizon Communications and TMobile US have gained 18.6%, 9% and 17.6% in the year-to-date period, respectively.

Comcast Corporation Price and Consensus

Comcast Corporation price-consensus-chart | Comcast Corporation Quote

Comcast has also been losing broadband subscribers because of the increase in competition. In the fourth quarter of 2024, the company reported a decline of 139,000 broadband subscribers, with further negative impact expected due to the end of the Affordable Connectivity Program. In response to these headwinds, the company is shifting strategy to retain and attract customers by simplifying its offerings and removing pricing uncertainty. As part of this effort, CMCSA launched the five-year price guarantee for its Xfinity Internet service, aiming to offer greater value and stability to consumers while reinforcing customer loyalty in an increasingly competitive broadband market.

CMCSA’s Earnings Estimate Revisions Show Downward Trend

The Zacks Consensus Estimate for CMCSA’s first-quarter 2025 earnings is currently pegged at 98 cents per share, which has been revised downward by 3 cents over the past 30 days. The estimate indicates a year-over-year decline of 5.77%. 

The consensus mark for revenues is pegged at $29.68 billion, indicating a year-over-year decline of 1.25%.

CMCSA beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, with the average surprise being 7.47%.

See the Zacks Earnings Calendar to stay ahead of market-making news.

Here’s Why You Should Hold CMCSA Stock for Now

Despite subscriber losses and growing competition, Comcast shows strong long-term prospects supported by its strategic moves and a growing wireless segment. Its Xfinity Mobile service, combined with 19 million Wi-Fi hotspots, offers cost-effective plans and has emerged as a significant growth driver. The company is also expanding its prepaid offerings under the NOW brand. However, ongoing broadband subscriber declines and macroeconomic pressures on its consumer-driven businesses, including Studios and Theme Parks, raise concerns.

CMCSA currently carries a Zacks Rank #3 (Hold), suggesting that it may be wise for investors to wait for a more favorable entry point in the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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