Comcast Could Rise to Xfinity

Peter Lynch always said you should be able to explain your reasons for investing in a company to a 5th grader. With that in mind, here's why you should buy Comcast Corporation CMCSA: people love to watch TV. Comcast seems to be making all of the right moves to get as much content as possible in front of as many eyes as possible. Recognizing that more and more people are consuming media on devices other than their televisions, Comcast has ramped up its efforts to distribute its content online -- through its new Xfinity platform -- and on mobile devices, like the iPad. These efforts could help Comcast break out of the trading range the stock has been forming between $20.50 and $21. $20.50 was a resistance level back in late-April, but Comcast was able to break up and through this level at the end of October. However, since that time, the stock has been consolidating. Perhaps final approval from the Federal Communications Commission (FCC) on Comcast's proposal to buy NBC Universal will give the stock the momentum it needs to break higher -- even if that approval does come with a few anti-trust strings attached. Analyst Expectations: Looking ahead to next quarter's earnings announcement, analysts expect Comcast to earn $1.27 per share -- which is $0.94 more than the company made during the same quarter last year. Kaufman Bros, one of the last firms to issue a rating on Comcast, upgraded the stock from a Hold rating to a Buy rating and adjusted its price target from $21 to $25.. Fundamental Analysis: Comcast has a mixed fundamental outlook -- based on the return on equity (ROE) the company is providing and the stock's PEG ratio. Continue reading the article.