Although the stock market just hit all-time highs a week ago, the past few months have seen a slowdown in stocks. Various fears, from an economic slowdown to the impact of tariff, are likely to keep weighing on stocks.
That means a sideways market. In this kind of market, income-producing stocks tend to be reasonable plays. And so do companies that are likely worth more than the sum of their parts. Ideally, an investor can find both.
One such play may be media giant Comcast (CMCSA).
Best known for its cable network, Comcast also owns a variety of entertainment properties, such as NBC/Universal. That makes for a somewhat complicated company, but overall it looks like a reasonable value today.
Today, Comcast trades at just 9 times both current and forward earnings. And despite fears of a continued decline in cable TV subscribers, Comcast continues to grow on the internet side, and revenues inched higher by 2% in the past year.
Action to take: In addition to being a value play, shares trade with a 3.7% dividend yield right now, amply covered by cash flows. Value and income-oriented investors may like shares at current prices, and the stock could be worth adding to during a market panic.
For traders, shares hit a 52-week low at the start of February and are now looking to trend higher. The June $40 calls, last trading for about $0.52, could see high double-digit returns if Comcast shares are able to keep grinding higher from here.
Disclosure: The author of this article has no position in the company mentioned here, but may to trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.