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Comcast (CMCSA) Outpaces Stock Market Gains: What You Should Know

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Comcast (CMCSA - Free Report) closed the most recent trading day at $51.68, moving +0.78% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.08%. Elsewhere, the Dow lost 0.56%, while the tech-heavy Nasdaq lost 4.81%.

Heading into today, shares of the cable provider had gained 6.01% over the past month, outpacing the Consumer Discretionary sector's loss of 1.32% and the S&P 500's gain of 0.64% in that time.

Comcast will be looking to display strength as it nears its next earnings release, which is expected to be January 27, 2022. In that report, analysts expect Comcast to post earnings of $0.73 per share. This would mark year-over-year growth of 30.36%. Meanwhile, our latest consensus estimate is calling for revenue of $29.6 billion, up 6.81% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for Comcast. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.52% lower. Comcast is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Comcast is currently trading at a Forward P/E ratio of 14.05. For comparison, its industry has an average Forward P/E of 18.05, which means Comcast is trading at a discount to the group.

Also, we should mention that CMCSA has a PEG ratio of 0.94. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CMCSA's industry had an average PEG ratio of 1.57 as of yesterday's close.

The Cable Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 193, which puts it in the bottom 25% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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