Investors continue to shun the broadband cable sector. Comcast (CMCSA) faced selling pressure after it posted second-quarter results.
In Q2, Comcast posted an EPS of $1.25 (non-GAAP). Revenue increased by 2.1% Y/Y to $30.31 billion. The weak results are consistent with the last few years. Competition continued to increase in the fixed wireless market. They are building fiber, which pressures Comcast.
Comcast needs to continue customer service quality. It needs promotional offerings to sustain retention rates. New customer growth will require offering reliable, competitively priced connectivity solutions.
In the health plan and pharmacy sector, CVS Health (CVS) is in value territory. CVS stock rose by 8% after posting Q2 results, but closed lower by the end of the week. It reported $98.9 billion in revenue for +9% Y/Y growth. The medical benefits ratio increased by 30 bps to 89.9%.
Markets worry that CVS relies on the health care benefits for the strong results. The government seeks to limit PBMs, which would hurt CVS.
The company posted strong performance in the consumer wellness segment. As a result, it increased its full-year guidance. It projects an EPS of $6.30 - $6.40.
In the health care sector, consider Cigna Group (CI) and UnitedHealth (UNH), too. They also trade at a good value.
