Comcast Is Cheap. Investors Are Too Pessimistic on Broadband, This Analyst Says.

A spinoff of some cable properties into a new company will occur in 2026. (Jeff Fusco/Getty Images for Comcast)

This article is an excerpt from “Amazon and 9 More Stocks to Buy for 2026,” published on Dec. 12, 2025. To see the full list, click here.

Comcast is among the S&P 500’s 10 cheapest stocks based on projected 2026 earnings. It has a safe dividend yield of almost 5%, trades for six times estimated 2026 earnings, and has bought back 5% of its stock over the past 12 months.

Shares, however, are down almost 30%, and at $27 trade below where they did a decade ago because Comcast’s cable and broadband business, the largest in the country, has been shrinking slowly. Next year’s earnings are expected to fall 3% to $4.13 amid competitive pressure in broadband from telecom companies like AT&T.

CEO and controlling shareholder Brian Roberts has been viewed as an empire builder, but that could be changing. Comcast lost out in the bidding war for Warner Bros. Discovery, but could still separate its valuable media, entertainment, and parks business, which could create $30 billion of value, or $8 a share, argues Wolfe Research’s Peter Supino. A smaller spinoff of some cable properties, including CNBC, into a new company, Versant, will occur in early January.

MoffettNathanson analyst Craig Moffett thinks investors are overly pessimistic on broadband. He has a Buy rating and an admittedly optimistic price target of $53 on the stock. Even if the stock gets back to its 52-week high of $40, investors would be happy.

Write to Andrew Bary at andrew.bary@barrons.com