Is This Network Gamble During the NFL Labor Dispute Paying Off?
NBC — owned by Comcast Corp. (NASDAQ:CMCSA) — saw its ratings rise following the telecast of two prime time National Football League games. The ratings confirm a smart move by the networks after spending record amounts of money on ad buys from the NFL during the labor dispute process with players.
Comcast shares trade at $22, up about 0.7% from yesterday. This represents a P/E ratio of about 16 which is in line with its industry. The company also trades at a sales multiple of 1.3 which is slightly lower than its industry rivals. On the technical front shares trade well below their rising 200 day moving average but close to their declining 50 day moving average. The MACD is bullish while RSI is pointing up at 54.
The other three primary investors in NFL programming are CBS (NYSE:CBS), ESPN (NYSE:DIS) and Fox Sports (NASDAQ:NWSA). However, NBC is cashing in the most this football season, as it has the broadcast rights for the next Super Bowl. Investors should also note: Comcast (NASDAQ:CMCSA) is one of Steve Cohen and SAC Capital’s Top Investments in the Services Sector.