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Comcast (CMCSA) Laps the Stock Market: Here's Why

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In the latest trading session, Comcast (CMCSA - Free Report) closed at $42.21, marking a +0.76% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.59% for the day. Meanwhile, the Dow gained 0.82%, and the Nasdaq, a tech-heavy index, added 0.55%.

The cable provider's shares have seen a decrease of 1.44% over the last month, not keeping up with the Consumer Discretionary sector's gain of 9.13% and the S&P 500's gain of 9.16%.

The investment community will be closely monitoring the performance of Comcast in its forthcoming earnings report. The company is forecasted to report an EPS of $0.80, showcasing a 2.44% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $30.39 billion, down 0.52% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.93 per share and revenue of $120.71 billion. These totals would mark changes of +7.97% and -0.59%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Comcast. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.65% higher. Comcast is currently sporting a Zacks Rank of #2 (Buy).

From a valuation perspective, Comcast is currently exchanging hands at a Forward P/E ratio of 10.65. This indicates a discount in contrast to its industry's Forward P/E of 12.44.

It's also important to note that CMCSA currently trades at a PEG ratio of 1.03. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Cable Television was holding an average PEG ratio of 1.03 at yesterday's closing price.

The Cable Television industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 154, positioning it in the bottom 39% 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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