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Comcast (CMCSA) Suffers a Larger Drop Than the General Market: Key Insights

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Comcast (CMCSA - Free Report) ended the recent trading session at $34.53, demonstrating a -1.65% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.84%. Elsewhere, the Dow lost 0.7%, while the tech-heavy Nasdaq lost 0.91%.

The cable provider's shares have seen a decrease of 1.04% over the last month, surpassing the Consumer Discretionary sector's loss of 0% and falling behind the S&P 500's gain of 1.44%.

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 July 31, 2025. The company is expected to report EPS of $1.18, down 2.48% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $29.81 billion, up 0.4% from the prior-year quarter.

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.

Investors should also note any recent changes to analyst estimates 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 business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 0.14% lower. At present, Comcast boasts a Zacks Rank of #3 (Hold).

Looking at valuation, Comcast is presently trading at a Forward P/E ratio of 8.07. This represents a discount compared to its industry average Forward P/E of 8.78.

One should further note that CMCSA currently holds a PEG ratio of 1.72. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Cable Television industry stood at 0.45 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 206, which puts it in the bottom 17% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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