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Comcast (CMCSA) Stock Sinks As Market Gains: Here's Why

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Comcast (CMCSA - Free Report) closed at $41.74 in the latest trading session, marking a -0.97% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 1.03%. At the same time, the Dow added 0.34%, and the tech-heavy Nasdaq gained 1.51%.

Coming into today, shares of the cable provider had lost 1.66% in the past month. In that same time, the Consumer Discretionary sector gained 0.45%, while the S&P 500 gained 3.21%.

The upcoming earnings release of Comcast will be of great interest to investors. The company's upcoming EPS is projected at $0.98, signifying a 6.52% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $29.93 billion, up 0.81% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $4.30 per share and a revenue of $124.49 billion, demonstrating changes of +8.04% and +2.4%, respectively, from the preceding year.

It is also important to note the recent changes to analyst estimates for Comcast. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Comcast presently features a Zacks Rank of #3 (Hold).

Digging into valuation, Comcast currently has a Forward P/E ratio of 9.81. This denotes no noticeable deviation relative to the industry's average Forward P/E of 9.81.

We can also see that CMCSA currently has a PEG ratio of 0.94. 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. Cable Television stocks are, on average, holding a PEG ratio of 0.68 based on yesterday's closing prices.

The Cable Television industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 211, placing it within the bottom 17% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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