CMCSA: 3 No-Brainer Stocks to Buy Now for the Long Term | StockNews.com (2024)

The Fed is likely to keep hiking rates well into 2023. Amid the possibility of persistent monetary tightening, economists have projected a 70% chance of U.S. recession in 2023.

Bill Adams, the chief economist at Comerica Bank, said, “The US economy is facing big headwinds from surging interest rates, high inflation, the end of fiscal stimulus, and weak export markets abroad.”

However, market strategist Ed Yardeni believes the U.S. economy and its tight labor market are resilient enough to overcome a recession. With high employment, Yardeni opines that consumer spending will remain strong and recession might be avoided.

Moreover, the long-term market outlook is optimistic. According to a Bankrate survey, the S&P 500 is estimated to rise to 4,243 over the next year.

Given the backdrop, Comcast Corporation (CMCSA), Elevance Health Inc. (ELV), and Waste Management, Inc. (WM) could be no-brainer stocks to buy for the long term. Moreover, these stocks have a significant dividend-paying history.

Comcast Corporation (CMCSA)

CMCSA operates as a media and technology company worldwide. It operates through Cable Communications, Media, Studios, Theme Parks, and Sky segments.

On December 12, 2022, CMCSA launched the world’s first live, multigigabit symmetrical Internet connection powered by 10G and Full Duplex DOCSIS 4.0. 10G technology. This technology will offer customers next-level net speed and performance, bolstering CMCSA’s product portfolio.

CMCSA has paid dividends for 13 consecutive years. Its dividend payouts have increased at 11.7% CAGR over the past five years. Its current dividend yield is 3.14%, while its four-year average yield is 2.08%.

CMCSA’s revenue came in at $29.85 billion for the third quarter that ended September 30, 2022, down marginally year-over-year. However, its Cable Communications revenue came in at $16.54 billion, up 2.6% year-over-year.

Moreover, its adjusted net income came in at $4.22 billion, up 4.5% year-over-year, while its adjusted EPS came in at $0.96, up 10.3% year-over-year. Also, its adjusted EBITDA came in at $9.48 billion, up 5.9% year-over-year.

CMCSA’s revenue is expected to increase 4.2% year-over-year to $121.28 billion in 2022. Its EPS is expected to increase 11.5% year-over-year to $3.60 in 2022. It surpassed EPS estimates in all four trailing quarters. The stock has gained marginally over the past three months and 80.7% over the past ten years to close the last trading session at $34.41.

CMCSA’s POWR Ratings reflect its promising outlook. It has an overall B rating representing a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

CMCSA has a B grade for Growth and Quality. It is ranked first among nine stocks in the industry. Click here to see the additional POWR Ratings for CMCSA (Value, Momentum, Stability, and Sentiment).

Elevance Health Inc. (ELV)

ELV operates as a health benefits company. It serves approximately 118 million people through a medical, digital, pharmacy, behavioral, clinical, and care solutions portfolio.

On November 28, 2022, 21 of ELV’s Medicaid plans became the first in the United States to earn a full three-year accreditation for health equity from the National Committee for Quality Assurance. This vastly adds to the company’s goodwill.

Also, on November 9, 2022, ELV agreed with CarepathRx, a portfolio company of Nautic Partners, to acquire BioPlus, a comprehensive specialty pharmacy. The acquisition is expected to help ELV better serve its customers.

ELV has paid dividends for 11 consecutive years. Its dividend payouts have increased at 13.7% CAGR over the past five years. Its current dividend yield is 1.01%, while its four-year average yield is 1.12%.

ELV’s total operating revenue came in at $39.63 billion for the third quarter that ended September 30, 2022, up 11.5% year-over-year. Its premium revenue came in at $33.72 billion, up 10.9% year-over-year. Also, its adjusted net income came in at $1.82 billion, up 9.1% year-over-year, while its adjusted EPS came in at $7.53, up 10.9% year-over-year.

ELV’s revenue is expected to increase 13.8% year-over-year to $155.87 billion in 2022. Its EPS is expected to increase 11.7% year-over-year to $29.03 in 2022. It surpassed EPS estimates in all four trailing quarters. The stock has gained 14.8% over the past year and 720.4% over the past ten years to close the last trading session at $504.65.

ELV’s overall A rating represents a Strong Buy in our POWR Ratings system. It has a B grade for Growth, Value, Stability, Sentiment, and Quality. It is ranked first among 11 stocks in the A-rated Medical – Health Insurance industry.

Click here to see the additional POWR Ratings for ELV (Momentum).

Waste Management, Inc. (WM)

WM and its subsidiaries provide waste management environmental services to residential, commercial, industrial, and municipal customers in North America.

On November 15, 2022, WM and Dow Inc. (DOW) announced the launch of their new collaboration to improve residential recycling for hard-to-recycle plastic films. Under this program, consumers in select markets can recycle these materials directly in their curbside recycling.

Jim Fish, WM’s President and CEO, said, “We recognize that to continue to meet and exceed our sustainability goals, we need to continue to expand our circularity solutions. We see tremendous untapped potential to recycle and reuse plastic film.”

WM has paid dividends for 19 consecutive years. Its dividend payouts have increased at 8.9% CAGR over the past five years. Its current dividend yield is 1.65%, while its four-year average yield is 1.72%.

WM’s revenue came in at $5.08 billion for the third quarter that ended September 30, 2022, up 8.8% year-over-year. Its adjusted net income came in at $645 million, up 21.7% year-over-year, while its adjusted EPS came in at $1.56, up 23.8% year-over-year.

Street expects WM’s revenue to increase 10.1% year-over-year to $19.74 billion in 2022. Its EPS is expected to increase 18.2% year-over-year to $5.72 in 2022. It surpassed EPS estimates in three of four trailing quarters. The stock has gained 12.2% over the past six months and 364% over the past ten years to close the last trading session at $157.79.

It’s no surprise that WM has an overall B rating, which equates to a Buy in our proprietary rating system. In addition, it has a B grade for Stability and Quality.

WM is ranked #5 out of 15 stocks in the B-rated Waste Disposal industry. Click here for the additional POWR Ratings for WM (Growth, Value, Momentum, Sentiment).

CMCSA shares rose $0.07 (+0.20%) in premarket trading Wednesday. Year-to-date, CMCSA has declined -29.82%, versus a -18.58% rise in the benchmark S&P 500 index during the same period.

About the Author: Riddhima Chakraborty

Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries. More...

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