Comcast Corporations is a multi-national telecommunications company whose purpose is to connect everyone through technology and entertainment. Comcast operates Xfinity, the largest home internet service in the United States, but recently its stock has shown signs of weaknesses.

Comcast’s share price has been lagging, with decline rates happening for the entire first half of the year. In fact, in the first six months, shares have been down around 20%, with net income decreasing. Due to this, investors actually see CMCSA as an undervalued buy, making it a potential upside for investors who believe in potential growth over time.

However, looking at the risks associated with the stock after a Discounted Cash Flow model by Simply Wall St., Comcast is at risk of losing around 16.1% of its earnings in the three years. They are also in significant levels of debt, which is something else investors should take into account before buying. Investors should note that its D/E ratio is currently 0.99, compared to the industries of 0.79, signaling they are higher in debt compared to other companies within the telecommunications and entertainment industry.

Here may be some good parts of CMCSA: it has a P/CF ratio of around 3.75 (a value under 20 is considered generally good and desirable by investors), and it has a P/E ratio of around 7.33 at the time of writing, making it a possible good pick for value investors. The company also beat the Zacks Consensus Estimate revenue by 1.6%, reporting about $30.31 billion in the last recorded quarter. The year-over-year change was around a 2.1% increase.

All in all, after research, most investors would advise to hold the stock, as there are mixed opinions about the trajectory it is headed.

Comcast Corp (NASDAQ: CMCSA)