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Comcast (CMCSA) Exceeds Market Returns: Some Facts to Consider

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The latest trading session saw Comcast (CMCSA - Free Report) ending at $36.94, denoting a +0.93% adjustment from its last day's close. This change outpaced the S&P 500's 0.16% gain on the day. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, added 0.46%.

Shares of the cable provider witnessed a gain of 0.83% over the previous month, beating the performance of the Consumer Discretionary sector with its loss of 5.22% and the S&P 500's loss of 3.59%.

Market participants will be closely following the financial results of Comcast in its upcoming release. The company plans to announce its earnings on April 24, 2025. The company's earnings per share (EPS) are projected to be $1.01, reflecting a 2.88% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $29.86 billion, down 0.66% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $4.34 per share and revenue of $122.86 billion, which would represent changes of +0.23% and -0.7%, respectively, from the prior 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. The Zacks Consensus EPS estimate has moved 0.09% higher within the past month. Comcast currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Comcast is holding a Forward P/E ratio of 8.44. This signifies a premium in comparison to the average Forward P/E of 8.26 for its industry.

It's also important to note that CMCSA currently trades at a PEG ratio of 1.79. 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 average PEG ratio for the Cable Television industry stood at 1.08 at the close of the market yesterday.

The Cable Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 158, putting it in the bottom 38% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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