PreMarket Prep Dissects Comcast's Q3 Earnings Rally: 'It Is Hard To Be Bullish Long-Term'

If you think that the S&P 500 being down nearly 20% for the year is bad, how about Comcast Corporation CMCSA's 33% plunge? 

Looking at the stock chart from the perspective of Comcast's all-time high, made in September 2021 at $61.80, the issue is down 46% at $33.50.

Now the good news: Comcast has distanced itself from the 6 1/2-year low ($28.39) it made earlier this month with a third-quarter earnings beat. The price action following the report makes it the PreMarket Prep Stock of the Day.

Street Leans Long Into Comcast's Report: Just as the S&P 500 index has mounted a rally from its mid-October low, so has Comcast. In fact, the issue bottomed on the exact same day as the index and has ground its way higher.

On Wednesday, the issue posted its high for the rebound ($32.18) and closing high ($31.50). That marks a $3.11 or 11% rally for the issue, which is just over the 10.2% gain for the S&P 500.

Comcast's Q3 Report: Before the opening Thursday, the company reported quarterly earnings of 96 cents per share, which beat the analyst consensus estimate of 90 cents by 6.67%.

The cable company reported quarterly sales of $29.85 billion, which beat the analyst consensus estimate of $29.71 billion by 0.47%. 

PreMarket Prep's Take On Comcast: When the issue was being covered on the show Thursday, it had already established its premarket high of $34.34 and had backed off into the upper $33 handle.

Co-host Dennis Dick said Comcast is a low beta issue that was cut in half.

“A lot of bad news has been priced into the issue for the long-term, but it is hard to be bullish long-term with its core business under attack.”

The author of this article noted this was an extraordinary move for Comcast and that it would be hard-pressed to revisit or breach the premarket high. The reason: the issue had two previous highs from Sept. 20 ($34.23) and Sept.  21 ($34.09), and that was the area from which it retreated on its way from its multiyear low.

The discussion on the issue from Thursday’s show can be found here:

CMCSA Price Action: The issue shed some of its premarket gains but still had a strong opening price Thursday ($32.99 vs. Wednesday’s closing price of $31.50). The issue was volatile in the first 45 minutes of the session, ripping through the $33 handle, bottoming at just under $33 and peaking at just over $34.

The high for the session as of midday Thursday stands just under the premarket high at $34.26 and its now trading actively in the upper $32 handle. 

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