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Top Analyst Reports for Comcast, CME and Charter Communications – May 6, 2022

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Friday, May 6, 2022

Zacks Research Daily features the best research results from our team of analysts. Today’s Research Daily features new research reports on 16 major stocks, including Comcast Corp. (CMCSA), CME Group Inc. (CME) and Charter Communications, Inc. (CHTR). These research reports have been handpicked from the approximately 70 reports published today by our team of analysts.

You can see all today’s research reports here >>>

Comcast shares are down -29.8% over the past year against Zacks Cable TV industry decline of -29.5%. The Zacks analyst believes Comcast is constantly suffering from video subscriber attrition due to the cord cut. Additionally, a leveraged balance sheet is a major concern.

However, Comcast is also benefiting from the strength of the broadband subscriber base and strong momentum in the wireless industry. Its strategy to provide high-speed Internet access at an affordable price plays a central role in providing connectivity, improving earnings and customer experience.

Media consumption and waves of work-from-home and online learning bode well for Comcast’s internet business due to the recent pandemic. The company’s Peacock streaming service has grown in popularity in a short time and is a key catalyst in boosting broadband sales.

(You can read the full Comsat research report here >>>)

Shares of CME Group have outperformed the Zacks Securities and Exchanges sector over the past year (+6.5% vs -12.6%). The Zacks analyst believes CME Group’s strong market position, driven by diverse derivative product lines, bodes well. Efforts to expand and cross-sell through strategic alliances, acquisitions, new product initiatives and a stable global presence bode well.

Product innovation and the growing proportion of volume from customers outside the United States contributed to the results. The company intends to focus more on OTC clearing services

However, escalating expenses due to the rising cost of technology is likely to put pressure on the company’s margin expansion. The diversified product portfolio is highly exposed to interest rate volatility, stringent government regulations and limited credit availability in an unstable capital and credit market. In addition, fierce competition poses a financial risk to the business.

(You can read the full research report on CME Group here >>>)

Charter Communications shares are down -33.6% over the past year, versus Zacks’ cable TV industry decline of -29.5%. The company is constantly suffering from video subscriber attrition, primarily due to cord cutting and fierce competition from streamers like Netflix and Disney+. The expansion of the Internet user base has begun to slow with the lifting of COVID restrictions. This, along with a leveraged balance sheet, are major concerns.

However, benefit from the growth in residential, mobile and commercial revenues, as evidenced by the results of the first quarter of 2022. The company continues to see an increase in Internet use due to the wave of working from home and pandemic-induced e-learning.

The expansion of Charter’s mobile subscriber base has been a key catalyst. The momentum should continue in the short term. Charter’s broadband service has gained traction with small and medium-sized businesses.

(You can read the full Charter Communications research report here >>>)

Other noteworthy reports we’re featuring today include Merck & Co., Inc. (MRK), Airbnb, Inc. (ABNB), and Edwards Lifesciences Corp. (EW).

Marc Vickery
Senior Writer

Note: Sheraz Mian leads the equity research department at Zacks and is a well-known expert on overall earnings. He is frequently quoted in the written and electronic press and publishes the weekly Earnings Trends and Revenue overview reports. If you would like to receive an email notification whenever Sheraz publishes a new article, please click here>>>