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Comcast (CMCSA) Outpaces Stock Market Gains: What You Should Know

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Comcast (CMCSA - Free Report) ended the recent trading session at $34.66, demonstrating a +0.96% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.58% gain on the day. On the other hand, the Dow registered a gain of 0.51%, and the technology-centric Nasdaq increased by 0.81%.

The cable provider's shares have seen a decrease of 0.35% over the last month, not keeping up with the Consumer Discretionary sector's gain of 6.18% and the S&P 500's gain of 4.61%.

The investment community will be closely monitoring the performance of Comcast in its forthcoming earnings report. On that day, Comcast is projected to report earnings of $1.18 per share, which would represent a year-over-year decline of 2.48%. Our most recent consensus estimate is calling for quarterly revenue of $29.81 billion, up 0.4% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.35 per share and a revenue of $122.07 billion, indicating changes of +0.46% and -1.35%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Comcast. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.14% fall in the Zacks Consensus EPS estimate. Comcast is currently sporting a Zacks Rank of #3 (Hold).

Looking at valuation, Comcast is presently trading at a Forward P/E ratio of 7.89. This represents a discount compared to its industry's average Forward P/E of 8.94.

Meanwhile, CMCSA's PEG ratio is currently 1.68. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Cable Television industry had an average PEG ratio of 0.43.

The Cable Television industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 160, placing it within the bottom 35% of over 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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