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Undervalued Comcast Is a Telecom to Watch

The firm's core cable business supports our wide-moat rating, and we think shares look attractive today.


Michael Hodel: Comcast is one of our favorite companies in the U.S. telecom industry, and in fact, it's the only firm in the industry that we rate wide moat. The basis for our wide moat rating stems primarily from the strength of the firm's core cable business, where we think its networks provide it with a huge advantage versus its primary rivals, the fixed-line phone companies. We do think wireless service presents a little bit of a threat to Comcast cable business, but we also think Comcast has an opportunity to punch back against wireless by entering the wireless business itself.

NBCUniversal also makes up a big part of Comcast. We don't think NBCU is as well positioned as the core cable business, but we still like what Comcast has done with NBCU over the last several years, building out very well-positioned content franchises and building platforms to monetize those franchises effectively. 

Michael Hodel does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.