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Comcast (CMCSA) Declines More Than Market: Some Information for Investors

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Comcast (CMCSA - Free Report) ended the recent trading session at $39.37, demonstrating a -1.92% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 1.46% for the day. At the same time, the Dow lost 1.24%, and the tech-heavy Nasdaq lost 1.63%.

Coming into today, shares of the cable provider had lost 6.26% in the past month. In that same time, the Consumer Discretionary sector lost 2.31%, while the S&P 500 gained 1.6%.

The investment community will be closely monitoring the performance of Comcast in its forthcoming earnings report. The company is scheduled to release its earnings on April 25, 2024. The company's upcoming EPS is projected at $0.98, signifying a 6.52% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $29.81 billion, showing a 0.39% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.23 per share and a revenue of $124.52 billion, signifying shifts of +6.28% and +2.42%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for Comcast. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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, there's been a 0.84% fall in the Zacks Consensus EPS estimate. Comcast currently has a Zacks Rank of #4 (Sell).

In terms of valuation, Comcast is currently trading at a Forward P/E ratio of 9.49. This valuation marks a premium compared to its industry's average Forward P/E of 8.9.

We can also see that CMCSA currently has a PEG ratio of 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 average PEG ratio for the Cable Television industry stood at 0.72 at the close of the market yesterday.

The Cable Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 244, which puts it in the bottom 4% of all 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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