Cable and Satellite Communications “Recession Resistant”

Almost every industry is feeling the affects of the economic downturn, but according to Barclay’s analyst Vijay Jayant the cable and satellite industries are somewhat immune. Companies such as DirecTV group, who offer more than just “ad-supported media,” are expected to continue performing strong throughout 2009.

Competition in the sector is increasing and shares are slipping slightly, but compared to other industries the companies are still expected to outperform expectations this year. As such, Jayant clarified that there is a difference between “recession-resistant” and “recession-proof.” No industries are completely “recession-proof” but the cable and satellite sectors seem to be fairing quite well considering the circumstances.

Cable companies such as Comcast Corporation have seen shares decline as little as .89 cents, or roughly a little over 5%. While numerous companies are facing declines in the double digits this speaks a great deal about the industry as a whole.

Jayant listed satellite TV provider Dish Network Corp. as his top pick for the sector, noting that the company has a strong “potential to outperform expectations.” While the economy continues to suffer through turmoil, the cable and satellite communications sector is certainly one to watch.

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