Comcast Corporation (NASDAQ:CMCSA) just turned bullish at a valuation of $47. However, the lower timeframe moving averages have been trending downwards. The question, therefore, is whether a trend reversal is likely and whether investors should buy.
Zacks Research rates Comcast a B-score on value. The growth and momentum scores were C and D respectively. PEG ratio is at 1.01, meaning the stock is trading at fair value. Forward PE is 13.47%, with EPS expected growth of 13.31%.
Based on these fundamental indicators, Comcast is a buy-and-hold stock with the expectation that market valuation will go up.
At $47, Comcast is at a key support level
Source – TradingView
Price chart analysis considers that Comcast has reference support at $47, anchored on the linear regression channel. From this level, the stock is likely to gain towards a valuation of $53, where it may find some resistance and consolidation.
After $53, the stock will rise to levels between $60 and $65. The strongest indicator of this potential trend is the MACD crossing above the signal, marking the buildup of bullish momentum.
Investors need to closely observe the movements in moving averages. The lower-term 10-day and 20-day moving averages are expected to send the second signal of the bullish trend before the weekend.
Thereafter, the averages will move to rise above the 50-day. These interactions will trigger a surge in demand for the stock.
Comcast at a price of $47 is trading at fair value. The stock is a buy-and-hold, with the valuation expected to rise towards $53 then to $60. MACD confirms the beginning of bullish momentum.
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