Comcast CMCSA shares have plunged 15.8% over the past year, underperforming the Zacks Consumer Discretionary sector’s appreciation of 11.2% and the Zacks Cable Television industry’s decline of 5.1%.

CMCSA shares’ underperformance can be attributed to its recently reported decline in broadband subscribers, further negative impact anticipated on the subscriber base due to the end of the Affordable Connectivity Program and long-term competition from fiber and fixed wireless operators like AT&T T and Verizon Communications VZ. AT&T and Verizon are capitalizing on the 5G boom, with AT&T focusing on mobile 5G, fixed wireless, and edge computing, while Verizon is driving 5G adoption, expanding fixed wireless broadband, and accelerating its Ultra Wideband network rollout nationwide.

Despite the competition and near-term challenges, Comcast keeps identifying new growth opportunities to strengthen its long-term prospects. As part of the company’s latest investment in Northeastern Pennsylvania, Comcast has expanded its network to connect more than 18,500 homes and businesses in Lackawanna, Luzerne, and Columbia Counties, providing high-speed Internet. This expansion improves digital infrastructure, fosters economic growth, and gives the residents and businesses access to Xfinity and Comcast Business services, including Internet, mobile, entertainment, and security. 

This expansion plan will potentially lead to an increase in Comcast’s subscriptions and drive higher revenues. It will also help strengthen the company’s market share, countering the intense competition in the market.

The Zacks Consensus Estimate for CMCSA’s first-quarter 2025 earnings is currently pegged at $1.01 per share, suggesting a decline by a penny over the past seven days. The estimate indicates a year-over-year decline of 2.88%. 

The consensus mark for revenues is pegged at $29.86 billion, indicating a year-over-year decline of 0.66%.

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

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

CMCSA Stock: Buy, Sell or Hold?

Comcast reported record revenues and adjusted EBITDA in 2024. It is also actively strengthening its long-term prospects through various expansion and acquisition strategies, such as its recently announced plans to acquire Nitel. Although its strong financial performance and strategies are noteworthy, the company is facing significant competitive pressures and challenges at the moment. It persistently suffers from video-subscriber attrition due to cord-cutting and its broadband prospects are suffering from increased competition from fixed wireless and fiber businesses. Comcast also faces competition in the streaming market from providers like Netflix NFLX and Disney+ because of their extremely cheap source of TV programming and solid content, which is Netflix’s major growth driver. Disney+ also emerged as a dominant provider in the market, primarily driven by its subscription growth because of its content portfolio.

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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