|Bid||47.55 x 900|
|Ask||47.70 x 1000|
|Day's Range||47.11 - 47.74|
|52 Week Range||34.67 - 47.74|
|Beta (5Y Monthly)||1.06|
|PE Ratio (TTM)||17.60|
|Earnings Date||Jan 22, 2020|
|Forward Dividend & Yield||0.84 (1.79%)|
|Ex-Dividend Date||Jan 05, 2020|
|1y Target Est||50.94|
The online encyclopedia showcases just how powerful Hollywood can be, with nearly all of its top 10 stories connected to the entertainment industry.
Fourth-quarter earnings season continues with earnings from Netflix, IBM, Intel, Comcast, and several airlines. Plus, central bank decisions and Davos.
Alaska Air Group, Valero Energy and Comcast are among the companies that are expected to announce dividend increases next week.
Seven years ago, the two big China tech giants introduced mobile payments for the exchange of cash gifts—so-called red envelopes. Now the pair continue to compete to increase and engage users.
Comcast stock climbed Friday amid reviews for its Peacock video streaming service that will compete with products from Disney, AT&T; and Apple. Comcast Q4 earnings are due Jan. 23.
The stock market extended gains in the final half-hour of trading Friday, capping another week of record highs for the major indexes. The Dow Jones Industrial Average had its best week since August.
As yet another streaming service enters the heavily saturated space, one Wall Street analyst says consumers might be starting to feel streaming fatigue.
NBC’s streaming entry is cheap enough to compete with Disney and Netflix, with enough free content to compare well with ViacomCBS. Good news for Comcast.
The past five years have not been good for buyers of value stocks. The iShares S&P 500 Growth ETF (NYSEARCA:IVW) delivered a return of more than 70% between 2015 and 2019 compared to a 41% return for the iShares S&P 500 Value ETF (NYSEARCA:IVE).Overall, value stocks have been underperforming their growth brethren since at least 2007.InvestorPlace - Stock Market News, Stock Advice & Trading Tips"The narrative that actually explains the performance is that value has been getting cheaper and cheaper. It's gone from trading at about one-third the valuation multiples of growth stocks to roughly one-eighth the valuation multiple," Research Affiliates chairman Rob Arnott told CNBC in December.Arnott went on to suggest that if the economy slows down at some point in 2020, growth stocks will have nowhere to hide -- leaving value stocks to attract the lion's share of the buyers. * The Top 5 Dow Jones Stocks to Buy for 2020 To find my 10 value stocks to own in 2020, I will recommend one stock from the top-10 holdings of the iShares Russell 1000 Value ETF (NYSEARCA:IWD), a second stock from the 11th-largest weighting through the 20th, a third stock from the 21st-largest weighting through the 30th and so on, up to the 100th-largest stock.To make things even more diversified, I'll make sure my picks represent at least nine different sectors.May the best value stocks win! Value Stocks to Own in 2020: Comcast (CMCSA)Source: Ken Wolter / Shutterstock.com My first selection is Comcast (NASDAQ:CMCSA), the cable company that's transformed itself into a massive creator of television and movie content in recent years.Over the past 52 weeks, CMCSA stock has delivered a total return to shareholders of about 33% -- more than six percent greater returns over the same period. Trading at 14.4 times its forward earnings and 2 times sales, Comcast is a good value stock to own if you believe people will continue to watch television and movies.In 2020, look for Comcast to bring out its Peacock video streaming service to compete with the plethora of other services already out there."The upcoming streaming service will cost Comcast $2 billion in investments. Management expects costs peaking at 1% of Comcast's revenue, but that the service will achieve breakeven by the fifth year," InvestorPlace's Chris Lau stated in late December.Add in its legacy cable business, along with Universal Parks and Resorts, and you've got the makings of a great long-term hold. Activision Blizzard (ATVI)Source: Casimiro PT / Shutterstock.com My second selection also comes from the communication sector. With nine sectors to choose from, I had to double up somewhere.Having read an article about the 7 Reasons Why Video Gaming Will Take Over, choosing Activision Blizzard (NASDAQ:ATVI), one of the world's leading video game publishers, seemed to be the right call.Over the past year, ATVI stock delivered a decent total return of about 28% -- comparable to the markets total return of nearly 27%. I'm confident it can do a whole lot better. Trading at 25.5 times its forward earnings and 6.8 times sales, it's not exactly cheap. However, given the potential of gaming and esports over the next decade, you have to pay up for potential growth.My InvestorPlace colleague, Luke Lango, recently called ATVI, one of the 15 best stocks own in 2020. He believes the introduction of the first new video game consoles since 2013 is a big reason to get on board. * 7 Earnings Reports to Watch Next Week In December, I doubted ATVI could get to $80 in 2020. My colleague's comments, however, have me questioning my original thoughts. In either case, this value stock is a long-term buy to hold for years to come. McDonald's (MCD)Source: 8th.creator / Shutterstock.com Next up from the value stocks camp are consumer discretionary stocks.Although it lost $4 billion in market capitalization in a single November day when McDonald's (NYSE:MCD) CEO Steve Easterbrook was fired for having a relationship with an employee, it's managed to claw back some of those losses in the two months since.Over the past 52 weeks, MCD stock -- thanks in part to Easterbrook's dismissal -- delivered a less-than-stellar total return of 20.2%, underperforming the markets by a considerable amount.Trading at 25 times its forward earnings and 7.8 times sales, it's priced like it's the best restaurant stock on the planet. It can't afford to go into a sales funk in 2020, or investors could see MCD stock trading under $200 for an extended period.Nonetheless, as InvestorPlace's Josh Enomoto said about the Golden Arches recently:"McDonald's is a proud member of the dividend aristocrats. It has increased its payout consistently over a 43-year period. If a downturn were to impact the markets, MCD stock is a name you'll want to own."I couldn't agree more. Coca-Cola (KO)Source: Fotazdymak / Shutterstock.com If I could only own two stocks in a recession, McDonald's and Coca-Cola (NYSE:KO) would be about as good a one-two punch as I can think of.Sure, Coca-Cola's struggled mightily in recent years to remain relevant in a world that's moved on from the company's syrupy drinks. But CEO James Quincey has made some big moves to make sure it stays a major player in the world of non-alcoholic beverages.Trading at 24.8 times its forward earnings and 7.3 times sales, it's neither cheap nor expensive -- but it is what I would term as fairly valued with room for growth. * Breakthrough Stocks: The Companies Set for Major Gains in 2020 However, as I said in September, in addition to the company's great products, it's got some equity investments that are likely to take off in 2020. Add to it a 2.8% yield, and you've got a value stock to stick in a drawer if there ever were one. Phillips 66 (PSX)Source: Jonathan Weiss / Shutterstock.com The thought of owning fossil fuel-related stocks in an era of renewable energy might seem pointless. But until we can turn off the oil switch, there still is a place in your portfolio for a company like Phillips 66 (NYSE:PSX).It's a quadruple threat with pipelines, refineries, chemicals business and gas stations.InvestorPlace's Aaron Levitt recently called PSX a value stock that generates real cash flows from its diversified business model. When it comes to energy stocks, Levitt knows his stuff. If he likes Phillips, I have to go along with him.Currently, PSX stock is trading at 10.1 times its forward earnings and just 0.4 times sales. So, if I have to own an energy stock, this is one of the few I'd be comfortable holding despite the fact it underperformed the markets over the past year.Furthermore, it might not be Warren Buffett's favorite stock -- that honor goes to Apple (NASDAQ:AAPL) -- but he still owns around $535 million or 1.2% of the company. Berkshire Hathaway (BRK.A, BRK.B)Source: Jonathan Weiss / Shutterstock.com JPMorgan (NYSE:JPM) just reported the most profitable year for a U.S. bank in history. It was so good, President Donald Trump was asking for thank you's from the company. Further, analysts are starting to come around about bank stocks in 2020.So, why recommend Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) as my pick for the financial sector?For one, Berkshire's top-10 holdings include a lot of banks; A total of $67 billion to be exact. Secondly, BRK is ready for a breakout year. Over the past year, it's managed a total return of just 16%. This is well below the 28% return for the entire U.S. market. Trading at only 19.3 times its forward earnings and 2.2 times sales, it isn't overvalued relative to its peers. * 7 Financial ETFs to Buy Besides, it's a great way to play Apple indirectly and another great value stock. Anthem (ANTM)Source: Jonathan Weiss / Shutterstock.com In November 2018, I recommended Anthem (NYSE:ANTM) stock to readers, arguing that CEO Gail Boudreaux was one of seven women whose companies were worth an investment. Since then, the provider of medical benefits to more than 40 million Americans in 14 states through Blue Cross Blue Shield has underperformed the markets as a whole.However, the same can be said for UnitedHealth Group (NYSE:UNH), another big provider of healthcare plans. Over the past year, Anthem and UnitedHealth have nearly identical annualized total returns around 17%.It's not a coincidence that since President Donald Trump has taken office, companies like Anthem and UnitedHealth have underperformed the markets. The White House is intent on dismantling Obamacare. And in the end, while this might be good for Anthem, the uncertainty scares away investors. Trading at 13.5 times its forward earnings and 0.8 times sales, ANTM stock is considerably cheaper than UNH. While I like them both, Anthem is the value play of the two. Caterpillar (CAT)Source: Shutterstock Of the 100 top stocks in IVE, 12 are industrials -- including Caterpillar (NYSE:CAT). Except for General Electric (NYSE:GE), which had an excellent rebound year in 2019, performances for the sector weren't anything to write about. CAT's one-year return was half the market as a whole.A few of my InvestorPlace colleagues appear positive about the year ahead for the world's largest manufacturer of heavy equipment; And why not. With a 16% global market share, it still has a big part to play in the global economy.IP contributor Larry Ramer believes several macroeconomic factors will boost CAT stock in 2020:"Caterpillar's valuation of less than 14 times analysts' average 2020 earnings per share estimate is a real bargain in this market, where so many stocks are overvalued," Ramer stated in early January. "And its 2.8% dividend yield will pay investors to wait in case the market takes a while to realize that many macro trends are moving in Caterpillar's favor." * 5 Not-So-Hot Stocks to Sell in 2020 Caterpillar's been down, but it's not out. And it is just another one of the great value stocks to add to your portfolio. Prologis (PLD)Source: rafapress / Shutterstock.com In the world of logistics real estate, Prologis (NYSE:PLD) is a giant.InvestorPlace contributor Louis Navellier, who got his reputation with growth stocks, recently recommended PLD stock amongst a group of seven real estate investment trusts."Prologis is the stock you want if you're a true believer in the world of e-commerce. It's the largest industrial real estate company in the world," Navellier stated Jan. 10. "It has facilities all around the world. And by its $56 billion market cap, you can be sure it's a major player in this sector."Having followed the exploits of Amazon (NASDAQ:AMZN) very closely in recent years, I don't see how you can't be a true believer. Retail has become an omnichannel affair, and logistics real estate is how companies like Amazon win the game.Trading at 47.9 times its forward earnings and 18.5 times sales, it's not exactly a legitimate value play.However -- as my colleague suggests -- with growth slowing around the world, Prologis' 2.3% yield ensures that your hard-earned capital will outperform inflation in 2020 and beyond. Intel (INTC)Source: canon_shooter / Shutterstock.com Of all 10 stocks on this list, I would argue that Intel (NASDAQ:INTC) is the most legitimate value play of the bunch. Not only does INTC stock trade at a ridiculously low 12.4 times its forward earnings and 3.8 times its sales, but the $14.7 billion in free cash flow (FCF) generated over the trailing 12 months results in a free cash flow yield of 5.3%. This is based on an enterprise value of $276.4 billion. By comparison, Apple's FCF yield is 4.2%, based on an enterprise value of $1.38 trillion. You can argue whether this last stat makes Apple an even better value play than Intel or not. I'll leave that for another day. Nontheless, what's hard to deny is that a company that generates as much free cash flow as Intel does should not be trading for less than $60 a share.Intel might not get the glory like Advanced Micro Devices (NASDAQ:AMD). But when it comes to financial strength, Intel wins hands down. And all of these factors make it just another member of the great value stocks.At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The Top 5 Dow Jones Stocks to Buy for 2020 * 7 Fintech ETFs to Buy Now for Fabulous Financial Exposure * 3 Tech Stocks to Play Ahead of Earnings The post The 10 Best Value Stocks to Own in 2020 appeared first on InvestorPlace.
NBCUniversal shared the details about its upcoming streaming service at an investor event yesterday. There will be a free tier of Peacock that includes more than 7,500 hours of programming, including classic shows and the current seasons of freshman broadcast series.
The streaming wars added another corporate combatant Thursday when Comcast Corp. offered details on Peacock, scheduled to debut April 15 for Comcast customers and July 15 for everyone else.
NBCUniversal (CMCSA) is launching a new streaming service that will have a large part available for free, an approach it hopes will resonate with people who aren’t interested in traditional TV. The service, Peacock, will debut April 15 for customers of Comcast, NBCUniversal’s parent company. There’s a free version, a $5-a-month version with lots more stuff and a $10 option to remove ads.
Dow Jones futures: The stock market rally keeps testing limits. Google parent Alphabet hit a $1 trillion market cap, joining Apple and Microsoft.
(Bloomberg Opinion) -- Comcast Corp.’s soon-to-launch Peacock service shows that advertising is the future of streaming TV. Consumers may be OK with that. On Thursday, the cable giant’s NBCUniversal entertainment division showcased Peacock to investors ahead of the app’s soft launch slated for April 15. Like Netflix, Disney+ and HBO Max (and to some extent, the content-lite Apple TV+), Peacock offers a library of movies; older and current network TV shows, such as “The Office” and “This Is Us”; and original programming made exclusively for its streaming audience. But it differs from the other services in one significant way: Peacock’s primary source of revenue will be ads, not subscriptions, allowing viewers the option of streaming for free. Let’s face it, paying for individual streaming-video apps at $7, $13 and $15 a pop isn’t all that cord-cutting was cracked up to be. The streaming-TV subscription model is brand new and broken. One app isn’t enough, yet having multiple subscriptions can get so expensive customers are left to wonder why they even got rid of cable. The streaming wars haven’t been a delight for the entertainment giants and their shareholders, either: These new apps are extremely costly to build and to stock with content, and they’ll cannibalize the larger revenue streams generated by traditional TV networks. Put it this way: TV just seems to work better for everyone when the consumer is the product, able to be sized up by advertisers desperate for a few moments of our time in hopes of activating a shopping reflex.Anecdotally, it’s said that viewers can’t stand ads. But in fact, research has shown that the No. 1 gripe for video subscribers is how much they’re paying. In a survey of about 6,000 North Americans conducted for TiVo Corp. toward the end of last year, about 70% said their reason for cutting the cord was that pay TV was too expensive. A separate survey by Ampere Analysis Ltd. similarly found price to be by far the biggest motivator for consumers switching to ad-supported apps, and 39% said they don't mind seeing ads while they watch. “We continue to believe consumers do not hate ads,” Rich Greenfield, an analyst for LightShed Partners, wrote in a report this week. “They hate heavy ad loads of un-targeted, repetitive ads in contrast to Instagram where the ads feel more like content.” Peacock is promising just five minutes of ads per hour.Media companies developing streaming services shouldn't underestimate the power of “free,” my colleague Sarah Halzack and I wrote last year in a column highlighting the appeal of ad-supported streaming offerings, such as Tubi, The Roku Channel and Pluto TV, which is now owned by ViacomCBS Inc. But compared to the quality of those apps, Peacock doesn’t feel free — it has plenty of premium content, carefully thought-out navigation and features, and with the option to watch some programming live and other stuff on-demand. A fuller content library can be accessed with Peacock Premium for $5 a month, although Comcast subscribers — even those who only have internet service — can get that version at no extra cost. For $10 a month, Peacock can be ad-free. But Comcast is probably hoping everyone will opt for the ads. About 70% of Hulu’s subscribers are on its ad-supported version, Peter Naylor, who heads up advertising sales for Hulu, said at a conference last year. And according to LightShed’s Greenfield, Hulu makes more money from its ad-supported version than from its ad-free subscriptions.For Comcast, it’s about “light advertising and bundling,” Jeff Shell, the newly installed CEO of the NBCUniversal unit, said during Thursday’s presentation. It’s one of the first signs of ”the great re-bundling” that I wrote about in November, as media giants realize they need to do something about the big consumer pain point of streaming: too many subscriptions.Comcast predicts Peacock will have at least 30 million active accounts and $2.5 billion of revenue by 2024, and that Ebitda will break even by then. Walt Disney Co. estimates Disney+ will turn profitable that same year, but it will take at least twice as many subscribers paying about $7 a month to do so. Similarly, AT&T Inc. is forecasting HBO Max won’t start making money until 2025, even though its fee is $15 a month. Meanwhile, Netflix has insisted it won’t adopt ads, despite the company’s $19 billion of content obligations as it burns through billions of dollars of cash each year.Of course, if ads are the name of the game, the industry has work to do to make them less annoying. Hulu, which is controlled by Disney, has been on the forefront of trying new advertising methods that are less interruptive than traditional commercials. It rolled out “pause ads” last year, which promote a brand’s product on screen while a video is paused.Comcast may be the only media giant to fully embrace ads so far for its streaming debut, but others will probably transition to a model more like Peacock’s over time. After all, birds of a feather flock together.To contact the author of this story: Tara Lachapelle at email@example.comTo contact the editor responsible for this story: Beth Williams at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Tara Lachapelle is a Bloomberg Opinion columnist covering the business of entertainment and telecommunications, as well as broader deals. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Comcast Corp.'s new streaming service Peacock got a glowing review early Friday from Wells Fargo with analysts predicting that it will be a growing part of the company's messaging. Comcast offered details on the new service for the first time Thursday at an analyst day, with the cable giant explaining that it would be available via a free premium ad-supported streaming service with subscription tiers offering more than 600 movies and 400 series. The service will launch April 15 for Comcast customers and July 15 for everyone else. Peacock, which gets its name from the iconic NBC logo, is similar to Hulu, the streaming service controlled by Disney . Hulu's ad-supported service is $5.99 a month. Peacock will offer a $4.99 a month and $9.99 a month product. "In our view, CMCSA management (very deep bench!) effectively laid the case why Peacock will have a place in the streaming field," Wells Fargo analysts led by Jennifer Fritzsche said in a note to clients. "The elevator pitch is there (here it is: CMCSA is relevant because it the only streaming player of scale that is going after the ad-supported premium content group)." Estimates offered by Comcast management are likely conservative and beatable and with the distribution agreement signed with Cox, it starts with a subscriber base of more than 24 million. "While we recognize there is no incremental revenue from this subscriber base directly, there is a significant intangible benefit of improving the overall retention of video subscribers that can come from such an offering," said the note. Wekks ?Fargo rates Comcast as overweight. Comcast shares were slightly higher premarket Friday, but have gained 31% in the last 12 months, while the S&P 500 has gained 26%.
Analysts see company guidance on the new streaming service as reasonable, but have key questions on profitability and engagement.
Comcast tapped top talent like Tina Fey and Seth Myers to announce its new slate of original content and classics that will be available on the service.
Next week, Wall Street's eyes will be on the Swiss Alps. Beginning Tuesday, 53 heads of state and dozens of trade and finance ministers make pledges and pontificate at the World Economic Forum's annual powwow in Davos. U.S. President Donald Trump will be there to deliver a speech just as his impeachment trial embroils Capitol Hill. Also Tuesday: Netflix will likely report an increase in its quarterly revenue. Given the launch of competing streaming services from Apple and Disney, investors want to hear details on its content spending plans and new additions to its library. Two days later, expect Comcast to report a rise in revenue stemming from an increase in internet customers. Earlier this week, its NBCUniversal unit announced pricing for is new streaming service, Peacock, ranging from free - with ads - for existing Comcast customers to $10 dollars a month. Wall Street expects higher profits from American Airlines and United Airlines but a drop from Southwest, which has been hit hard by the prolonged grounding of its Boeing 737 MAX jets. The markets will be closed Monday for the Martin Luther King holiday.