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Comcast (CMCSA) Gains But Lags Market: What You Should Know

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Comcast (CMCSA - Free Report) closed the most recent trading day at $46.48, moving +0.54% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.24%. At the same time, the Dow added 1.23%, and the tech-heavy Nasdaq gained 0.15%.

Heading into today, shares of the cable provider had lost 3.87% over the past month, outpacing the Consumer Discretionary sector's loss of 8.26% and lagging the S&P 500's loss of 2.45% in that time.

Comcast will be looking to display strength as it nears its next earnings release. In that report, analysts expect Comcast to post earnings of $0.82 per share. This would mark year-over-year growth of 7.89%. Meanwhile, our latest consensus estimate is calling for revenue of $30.43 billion, up 11.84% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.54 per share and revenue of $122.39 billion. These totals would mark changes of +9.6% and +5.16%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Comcast. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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 0.91% lower. Comcast currently has a Zacks Rank of #3 (Hold).

Investors should also note Comcast's current valuation metrics, including its Forward P/E ratio of 13.05. This represents a discount compared to its industry's average Forward P/E of 18.04.

Meanwhile, CMCSA's PEG ratio is currently 0.98. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Cable Television was holding an average PEG ratio of 1.46 at yesterday's closing price.

The Cable Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 163, putting it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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