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Should Value Investors Buy Comcast (CMCSA) Stock?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

Comcast (CMCSA - Free Report) is a stock many investors are watching right now. CMCSA is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 9.85, which compares to its industry's average of 10.51. Over the last 12 months, CMCSA's Forward P/E has been as high as 11.59 and as low as 8.90, with a median of 10.35.

Investors should also note that CMCSA holds a PEG ratio of 0.95. 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 has an average PEG of 1.05 right now. CMCSA's PEG has been as high as 1.23 and as low as 0.69, with a median of 0.84, all within the past year.

Investors should also recognize that CMCSA has a P/B ratio of 2.03. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.10. Within the past 52 weeks, CMCSA's P/B has been as high as 2.30 and as low as 1.81, with a median of 2.02.

Finally, our model also underscores that CMCSA has a P/CF ratio of 5.89. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.61. CMCSA's P/CF has been as high as 9.56 and as low as 5.51, with a median of 8.47, all within the past year.

These are just a handful of the figures considered in Comcast's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CMCSA is an impressive value stock right now.

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