This week’s Alpha Algorithm recommendation — Comcast Corporation (CMCSA) — signals a renewed interest in the cable sector among the top strategies in the U.S. market.
Comcast is among the world’s leading communication companies, providing basic cable, digital cable and high-speed internet services. In response to challenges faced by all cable providers, Comcast is in the process of deploying digital video applications and high-speed internet access service to expand the products available on its cable communications networks.
Comcast Corporation (CMCSA) vs. the S&P 500 year to date
Here are 12 top Alpha Algorithm strategies betting on Comcast Corporation (CMCSA).
1. Hedge Fund Alpha
Based on publicly available disclosures, successful hedge fund managers are investing in the stock.
2. Broker’s Best
Raymond James selected the stock as one that is expected to outperform the S&P 500 over either a six- or 12-month period.
3. Insider Sentiment
Comcast is one of 100 equally weighted, U.S.-listed, large- and mid-cap stocks chosen based on trading in a company’s stock by corporate insiders, price momentum and trailing 12-month volatility. Specifically, the increase in insider holdings is scrutinized.
4. Large-Cap Alpha Growth
The company is part of an alpha-seeking index that selects and weights growth stocks from the S&P 500 Growth Index. The proprietary methodology uses price appreciation — among more traditional factors — and weights the constituents based on their respective growth scores.
5. Large-Cap Alpha Core
The stock is one of a tiered, equal-weighted index of large-cap stocks selected from the S&P 500 that is expected to outperform the broader large-cap space, based on an intricate methodology of ranking stocks according to their recent performance.
6. Momentum Factor
The stock is one of the top 120 large- and mid-cap U.S. stocks exhibiting relatively higher price momentum, as measured by a specific factor which has historically driven a significant part of companies’ risk and return.
7. Large-Cap Momentum
The stock is part of a major hedge fund’s systematic strategy that invests in large- and mid-cap U.S. companies with positive momentum and that rank in the top third of total return over the prior 12 months, excluding the last month.
8. Pure Growth
The company is part of a strategy that selects companies from the S&P 500 Index, based on three growth factors: current internal growth rate, historical earnings per share (EPS) growth and historical sales/share growth.
9. Hedge Fund Gurus
The stock is one of the top U.S.-listed equity positions reported on Form 13F by select hedge funds with concentrated top holdings.
10. Goldman Sachs Hedge Fund Index
The stock is part of the Goldman Sachs Hedge Industry Index, which tracks an equal-weighted index of the 50 most-frequently held U.S. companies selected from the portfolios of hedge funds.
11. Billionaire Bet
The stock is one of 30 U.S. companies tracked in an equal-weighted index selected from the portfolios of 10 asset managers with a personal net worth of at least $1 billion.
12. Value Line 100
It is one of the top 100 stocks in the universe of 1,700 stocks for which Value Line gives a #1 ranking in the Value Line Timeliness Ranking System, based on expected price performance over the following six to 12 months.
Buy Comcast Corporation (CMCSA) at market today and place your stop at $36.50.
If you want to play the options, I recommend the CMCSA October 2017 $40.00 calls (CMCSA171020C00040000), which last traded at $1.33 and expire on Oct. 20.
Sell all of your remaining Apple, Inc. (AAPL) September $145 calls for a 123.30% gain.
Sell half of your Procter & Gamble (PG) October $87.50 calls for an 81.82% gain.
Raise your stop in The Boeing Company (BA) to $234.30 to lock in at least a 25% gain.
Raise your stop in Visa (V) to $99.30 to lock in at least a 10% gain.
Raise your stop in Citigroup (C) to $68.70 to lock in at least a 15% gain.
Nicholas A. Vardy