A stock which makes new highs has to be given due respect. The strength in Comcast has been pretty amazing. It has bounced back sharply after a correction, and has appreciated by 11% on a yoy basis. It has appreciated by 42% on a 52 week basis, and the investors have been rewarded with excellent returns. The dividend yield of 1.7% only adds to the attraction. The movement in the stock over the long term has been supported by good growth in fundamentals. The top and the bottom line has shown remarkable improvement since 2009. The gross and net margins have been increasing consistently. In the recent quarter, there were declines in revenue and net income on a sequential basis, but the yoy performance remained pretty good. The revenues had grown by 2.9%, while the net income had increased by nearly 18%. The upcoming earnings at the end of this month will be the next trigger for the stock. In case of positive surprises, the uptrend will gain even more momentum. On the other hand, negative surprises may lead to a correction. Earnings exposure is always risky, and recently some big and small names have disappointed. One can play based on individual risk appetite. Based on the past track record, the long term prospects remain good. The company is well diversified and remains open to new ideas & opportunities. It has recently invested fanduel.com, a fantasy sports website. The segment has already attracted investments from companies like Yahoo (YHOO) and MGT Capital Investments (MGT). However, the valuations will begin to get stretched if the stock rises further. So it is important that the fundamentals catch up with the pace of growth of the stock. This makes the Q2'13 earnings important for the short term trend of the stock. Hopefully, the company will not disappoint the investors.
