Rebel Income

Rebel Income Trade Alert: No Trade This Week

Thomas Moore — Tue, 01 Sep 2026 14:01:32 GMT

Hi everyone! The market's been a little shaky in the last few days as it digests comments from new Fed Chairman Warsh.

While Growth Investors Chase Ghosts, CMCSA Is Printing Cash

Thomas Moore — Sat, 29 Aug 2026 14:03:28 GMT

Inflation and interest rates have mostly settled into a holding pattern over the last year, but that calm hasn’t extended to every corner of the market. Some industries are dealing with structural pressures that have nothing to do with the Fed, and the wireline and cable business is a textbook example. Cord-cutting, fixed wireless competition, and a multi-year pivot away from traditional pay-TV have weighed on the legacy cable and broadband names even as the broader market has held up reasonably well.

Comcast Corporation (CMCSA) sits right in the middle of that story. As one of the largest players in the Telecom Services industry, alongside AT&T (T) and Verizon (VZ), Comcast has spent the past year and a half reshaping itself: spinning off its cable networks into the newly independent Versant Media in January 2026, and more recently announcing plans to separate NBCUniversal and Sky from the core connectivity business altogether. Add in a broadband subscriber base that’s been shrinking under pressure from fixed wireless access, and it’s easy to see why the market has taken a dim view of the stock.

That skepticism has pushed CMCSA down sharply from its 52-week high near $34.45 to a recent low around $21.28, with shares now trading a little above $27. What’s easy to overlook amid the corporate restructuring headlines is that the underlying business has actually been throwing off record levels of free cash flow, and the stock’s valuation multiples have compressed to levels rarely seen in the company’s history. Is the drop overdone, or is the market correctly pricing in a structurally challenged business? The fundamentals below make the case for the former.

Fundamental and Value Profile

Comcast Corporation operates as a media and technology company worldwide, organized around five segments: Residential Connectivity & Platforms, Business Services Connectivity, Media, Studios, and Theme Parks. Its connectivity operations provide residential and business broadband, wireless, and video services in the U.S. along with Sky-branded television networks in the U.K. and Europe. On the content side, Comcast owns NBCUniversal, home to the NBC broadcast network, Telemundo, the Peacock streaming service, Universal Pictures, and the Universal theme parks, including the recently opened Epic Universe in Orlando. The company was founded in 1966 (as a cable operator; the modern Comcast Corporation traces to 2001) and is headquartered in Philadelphia, Pennsylvania. CMCSA has a current market cap of roughly $96.1 billion.

Earnings and Sales Growth: Comcast’s most recent quarter reflected the ongoing shake-up in its portfolio. Revenue for the quarter came in at $29.9 billion, down modestly year-over-year, while net income attributable to Comcast fell sharply to $3.5 billion, largely due to a difficult comparison against a one-time gain in the prior year period. Despite the reported decline, Comcast’s margin profile actually improved in the period: Net Income was 8.97% of Revenues on a trailing-twelve-month basis, but accelerated to 11.78% in the most recent quarter — a useful signal that underlying profitability is stabilizing even as headline comparisons look messy because of the Versant spin-off and other separation-related noise.

Free Cash Flow: This is where Comcast’s story gets interesting. Trailing-twelve-month free cash flow has moved as follows over the last four quarters: $18.2 billion (quarter ended September 2025), $19.3 billion (quarter ended December 2025, a full-year record), $17.7 billion (quarter ended March 2026), and $17.8 billion currently (quarter ended June 2026). That’s a modest pullback from the record pace set at the end of 2025, largely a function of higher capital spending and one-time separation costs tied to the Versant and upcoming NBCUniversal transactions, but it’s still an exceptionally strong number relative to the company’s $96 billion market cap — a free cash flow yield of roughly 18.6%.

Debt to Equity: CMCSA carries a Debt/Equity ratio of about 1.00, on the higher side but standard for a capital-intensive telecom/media business. Total debt (current and noncurrent combined) has actually been trending down, from $99.1 billion a year ago to about $90.4 billion currently, as management has used cash from the Versant separation and strong free cash flow to retire debt. Cash and equivalents, meanwhile, have been more volatile quarter to quarter — $9.3 billion, $9.5 billion, $9.5 billion, and most recently $7.7 billion — reflecting the cash movements tied to the corporate separations. On balance, a shrinking debt load paired with strong free cash flow generation suggests debt service isn’t a concern.

Dividend: CMCSA pays an annual dividend of $1.32 per share, translating to a well-above-average yield of 4.88% at the current price. Comcast has increased its dividend for more than twenty consecutive years, and the payout is comfortably covered — the current payout ratio is well under half of both earnings and free cash flow. That combination of a growing dividend track record and modest payout ratio is a solid sign of management’s confidence in the business, even amid the corporate reorganization.

Price/Book and Price/Cash Flow Ratio: There are a lot of ways to measure how much a stock should be worth; I like to work with a combination of Price/Book and Price/Cash Flow analysis. Together, these measurements provide a long-term, fair value target at around $50.22 per share. That means the stock is undervalued at its current price, with 85.6% upside from here, and a useful discount price at around $40.18 per share. It’s worth noting this is an unusually wide gap — CMCSA’s current Price/Book ratio of 1.04 and Price/Cash Flow ratio of 2.88 both sit well below their five-year averages of 1.82 and 5.65, respectively, reflecting just how far sentiment has swung against the stock as the market digests the pending corporate breakup.

Technical Profile

Here’s a look at the stock’s latest chart.

Current Price Action/Trends and Pivots: CMCSA’s chart tells a story of a multi-year downtrend that has recently started to stabilize. Shares peaked near $34.45 over the past year before grinding down to a 52-week low of $21.28. The stock has since rallied back above $27, and — as of this writing — is trading above its 20-day moving average of $25.84, a bullish short-term signal, while sitting almost exactly on top of its 200-day moving average of $27.21. That’s a meaningful development: after spending much of the last year below its long-term trendline, CMCSA is testing that level from below for the first time in a while. A decisive move above the 200-day average would be a constructive signal that the longer-term downtrend is finally turning; a failure here and a drop back toward the low-$20s would suggest the market isn’t ready to let go of its skepticism just yet.

Near-term Keys: Comcast is in the middle of one of the more significant corporate restructurings in the telecom/media space — first the Versant spin-off, and now a planned separation of NBCUniversal and Sky — and that kind of uncertainty tends to compress valuation multiples well below what the underlying cash flow generation would otherwise support. That’s exactly what appears to have happened here: record free cash flow, a shrinking debt load, and a well-covered, growing dividend are being valued at some of the cheapest multiples in the stock’s history. The next earnings report, expected in late October, should offer more clarity on how the NBCUniversal separation is progressing, and that news flow is likely to be the key catalyst for whether the stock’s valuation gap starts to close.

Refer a friend

Rebel Income Trade Alert: McCormick & Company Incorporated (MKC)

Thomas Moore — Tue, 25 Aug 2026 16:38:15 GMT

One of the ironies of the market for the last year or so is the way that major market indices have shown stubborn resilience in the face of a lot of economic uncertainty on a global scale. Ongoing tensions in Iran, along with prolonged conflict in Ukraine and the Gaza Strip continue to affect global supply chains and commodity prices. Add persistent, stop-and-go tariff uncertainty on multiple fronts from the U.S., and you have a recipe for exactly the economic mix we’re seeing on a broad basis: higher-than-normal inflation, which naturally keeps rates elevated, and rising costs that filter all the way to consumers.

Rebel Income Trade Alert: Dow Inc. (DOW)

Thomas Moore — Tue, 18 Aug 2026 15:32:57 GMT

Don’t skip the end of today’s post. I’ve held shares in Eastman Chemical Company (EMN) since July, with the stock dropping well below my original assignment price of $75 almost immediately. The stock has been picking up enough bullish momentum for the last few weeks to bring it close enough to my purchase price to set up a useful new covered call opportunity. I’ve highlighted that set up after this week’s regular income-generating trades.

Rebel Income Trade Alert: Kohl’s Corporation (KSS)

Thomas Moore — Tue, 11 Aug 2026 15:22:08 GMT

Don’t skip the end of today’s post. I’ve held shares in Skyworks Solutions, Inc. (SWKS) since October of last year, with the stock spending most of that time below my original assignment price of $75. The stock has been picking up bullish momentum for the last month - enough that it’s close enough to my purchase price to set up a useful new covered call opportunity. I’ve highlighted that set up after this week’s regular income-generating trades.

Dow Inc. Got Cut In Half And Still Beats Every Growth Stock's Dividend

Thomas Moore — Mon, 10 Aug 2026 14:02:04 GMT

Chemicals are a bellwether for the industrial economy, and few industries have spent the last three years telling a clearer story about the cost of an extended down-cycle. Overcapacity out of China, a sluggish European manufacturing base, and ever-shifting tariff policy have all been squeezing the producers whose plastics, resins, and intermediates feed…

Rebel Income Trade Alert: Nike, Inc. (NKE)

Thomas Moore — Tue, 04 Aug 2026 15:16:59 GMT

Tariffs have been one of the biggest overhangs on the market for much of the past two years, and 2026 hasn’t offered much relief. Trade tensions between the U.S. and its major partners have kept import costs elevated for companies that rely heavily on overseas manufacturing, and few industries have felt that more directly than consumer discretionary retailers with sprawling global supply chains. Even as some companies have started to see partial relief, the broader uncertainty around trade policy has made it difficult for management teams to offer confident guidance, and just as difficult for investors to know what multiple to pay for that uncertainty.

Rebel Income Trade Alert: McCormick & Company Incorporated (MKC)

Thomas Moore — Tue, 28 Jul 2026 16:49:52 GMT

Don’t skip the end of today’s post. I’ve held shares in the stock since being assigned in April. The stock’s been rallying through most of this month, pushing the stock into territory that’s setting up a useful new covered call trade. That setup is highlighted after this week’s regular trades.

The food industry rarely sees a deal of the size of McCormick & Company (NYSE: MKC)’s agreement to combine with Unilever’s foods business. The transaction looks like it will value the combined entity at roughly $45 billion. The deal is planned to close by mid-2027, pending the normal regulatory reviews required on two continents (United States and England).

PepsiCo is Down and Unloved. That's When Bargain Hunters Start Paying Attention

Thomas Moore — Mon, 27 Jul 2026 14:02:03 GMT

Consumers have spent the better part of 2026 tightening their belts. Persistently elevated grocery prices, yet another, conflict-driven run-up in gas prices, and a cooling labor market have combined to force households to be more selective about where their discretionary dollars go. For the packaged food and beverage industry, that has translated into a…

Rebel Income Trade Alert: Kohl’s Corporation (KSS)

Thomas Moore — Tue, 21 Jul 2026 16:00:40 GMT

Don’t skip the end of today’s post. I was assigned shares of EMN last Friday. The stock is still a little below my assignment price, but close enough to set up a useful covered call opportunity. That setup is highlighted after this week’s regular trades.

The American retail landscape is momentously different than it was a decade ago. Traditional, brick-and-mortar department stores have been forced to adapt to a fundamental shift in consumer purchasing habits, fueled by the relentless expansion of Amazon and other e-commerce giants. On the opposite, and more recent extreme, inflation and elevated interest rates have begun squeezing consumer pocketbooks. Few companies have felt those dual pressures more acutely than Kohl’s Corporation.

ConAgra's Dividend Cut Isn't Weakness. It's a Company Finally Telling the Truth

Thomas Moore — Mon, 20 Jul 2026 14:05:06 GMT

Packaged food investors have had a rough stretch. After initially pushing through price increases to offset inflation, companies across the industry are hitting a wall. Consumers, still squeezed by high borrowing costs and rising grocery bills, are trading down to private label goods over recognized brands and even pulling back on the shelf-stable and f…

Rebel Income Trade Alert: Bristol Myers-Squibb Company (BMY)

Thomas Moore — Tue, 14 Jul 2026 15:29:17 GMT

Bristol Myers-Squibb Company (BMY) is a stock I’ve been following for quite a while, and have been able to use on a number of occasions since 2019 for useful, income-generating trades. My most recent put selling trade on this stock expired worthless at the end of June. The stock isn’t far off from the price it was at when I placed that trade, which means that the stock’s solid fundamental profile, along with its useful value proposition, translate to a good opportunity to keep the stock in my trading rotation.

Rebel Income Trade Alert: No Trade This Week

Thomas Moore — Tue, 07 Jul 2026 18:20:54 GMT

Hi everyone! The market's been picking up bullish momentum, and as some of the valuation on the stocks I'm following are getting a little stretched, I'm going to hold off on a trade this week.

Rebel Income Trade Alert: Medtronic PLC (MDT)

Thomas Moore — Tue, 30 Jun 2026 15:46:07 GMT

The last month has seen the market’s optimism fade and give way to uncertainty. It’s tempting to think that’s a bad sign, as uncertainty often translates to fear, but just as often, it’s really nothing more than uncertainty.

Rebel Income Trade Alert: Eastman Chemical Company (EMN)

Thomas Moore — Tue, 23 Jun 2026 17:35:45 GMT

For this week’s set of income-generating trades, I’m happy to apply one of my favorite methods: recycling a stock I used recently (I sometimes also like to call this lather-rinse-repeat). When a previous put selling trade expires without an assignment, and the stock is still in the same general price area to be useful from a valuation perspective, it’s hard to find a case for why I shouldn’t keep the stock in my trading rotation. That’s why you often see me work with the same stock multiple times, sometimes over only the course of a few months.

The Market Wants Growth at Any Price. MDT Hands You Growth at Roughly 24% Off

Thomas Moore — Sat, 20 Jun 2026 02:01:34 GMT

Interest rates and inflation have been the market’s defining question for most of the last four years, and the middle of 2026 hasn’t brought much resolution. The Fed has parked its target range at 3.50% to 3.75%, with policymakers holding rates steady as expected. The reason is familiar: inflation is still running above the Fed’s 2% to 3% comfort zone, …

Rebel Income Trade Alert: Kohl’s Corporation (KSS)

Thomas Moore — Tue, 16 Jun 2026 17:48:25 GMT

Don’t skip the end of today’s post. SWKS is a stock I’ve held since October of last year. The stock dropped well below my original assignment price, but more recently has rallied enough to set up a very interesting covered call trade. That setup is outlined after this week’s regular trades.

KMB Is the Anti-FOMO Trade

Thomas Moore — Thu, 11 Jun 2026 03:26:12 GMT

For most of the last few years, the market’s biggest question has been how high interest rates would go and how long they’d stay there. That question has slowly given way to a different one: how a higher-for-longer baseline reshapes the way investors think about income. The near-zero rates that defined the 2010s aren’t coming back, and with the Fed stil…

Rebel Income Trade Alert: Bristol Myers-Squibb Company (BMY)

Thomas Moore — Tue, 09 Jun 2026 18:26:09 GMT

Bristol Myers-Squibb Company (BMY) is a stock I’ve been following for quite a while, and have been able to use on a number of occasions since 2019 for useful, income-generating trades. While the last week has seen the market’s volatility increasing to the downside, defensive sectors like healthcare, especially slower-growth pharma names that have been strongly out of favor for the past year have provided stability. BMY fits into that category.

While You Chased the Next 40x, KSS Was Quietly Yielding 49% on Cash

Thomas Moore — Fri, 05 Jun 2026 04:07:54 GMT

The American retail landscape has been a battlefield for the better part of a decade, and the casualties have been mounting. Brick-and-mortar department stores have been fighting a war on two fronts simultaneously: the relentless expansion of Amazon and other e-commerce giants on one side, and the crushing weight of inflation, elevated interest rates, a…