Despite consecutive aggressive rate hikes, inflation is still higher than the federal target. This is raising recession fears. Moreover, the unemployment rate is expected to reach almost 4.5% in 2023, up from 3.5% in September 2022. While this might appear to be a grim projection, it would still be relatively low in a historical context.
Boston Federal Reserve President Susan Collins believes, “There is a pathway to re-establishing price stability with a labor market slowdown that entails only a modest rise in the unemployment rate.”
Also, according to Ned Davis Research, the odds of the Fed achieving a ‘soft landing’ has increased after October’s favorable inflation data. In addition, according to the recent AAII Sentiment Survey, bullish sentiment jumped 8.4 percentage points to 33.5%.
Comcast Corporation (CMCSA)
CMCSA operates as a media and technology company worldwide. Its segments are Cable Communications; Media; Studios; Theme Parks; and Sky.
On November 17, 2022, CMCSA announced a lucrative $3 million investment to expand its intelligent, fast and reliable fiber-rich network in Charlottesville, Chesterfield, Fredericksburg, Reston, Sterling, and Woodbridge. This investment is another feather in the cap for CMCSA’s business expansion prospects.
For the third quarter that ended September 30, 2022, CMCSA’s revenue came in at $29.85 billion, down marginally year-over-year. However, 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 4.3% year-over-year to $121.35 billion in 2022. Its EPS is expected to increase 12.1% year-over-year to $3.62 in 2022. It surpassed EPS estimates in all four trailing quarters. Over the past month, the stock has gained 15.2% to close the last trading session at $35.10.
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 Entertainment – TV & Internet Providers industry. Click here to see the additional POWR Ratings for CMCSA (Value, Momentum, Stability, and Sentiment).
Universal Logistics Holdings, Inc. (ULH)
ULH provides transportation and logistics solutions in the United States, Mexico, Canada, and Colombia. It offers truckload services, domestic and international freight forwarding, customs brokerage services, and final mile and ground expedite services.
On October 27, 2022, ULH’s CEO, Tim Phillips, said, “Although we are facing weakening freight demand and heightened macro concerns, I remain confident in Universal’s ability to navigate the current environment and deliver a solid finish to this record-setting year.”
ULH’s total operating revenues came in at $505.69 million for the third quarter that ended October 1, 2022, up 13.5% year-over-year. Its net income came in at $48.48 million, up 371.9% year-over-year, and its EPS came in at $1.84, up 384.2% year-over-year.
Street expects ULH’s revenue to increase 15.3% year-over-year to $2.02 billion in 2022. Its EPS is expected to increase 135.4% year-over-year to $6.45 in 2022. It surpassed EPS estimates in all four trailing quarters. The stock has gained 98.5% year-to-date to close the last trading session at $37.43.
ULH has an overall A rating, which equates to a Strong Buy in our proprietary rating system. In addition, it has an A grade for Growth and a B for Value, Momentum, Stability, and Sentiment.
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CMCSA shares were trading at $35.10 per share on Wednesday morning, down $0.00 (0.00%). Year-to-date, CMCSA has declined -28.41%, versus a -14.71% 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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