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

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Comcast (CMCSA - Free Report) closed at $26.65 in the latest trading session, marking a -2.42% move from the prior day. This change lagged the S&P 500's daily loss of 0.35%. Elsewhere, the Dow lost 0.45%, while the tech-heavy Nasdaq lost 0.14%.

The cable provider's stock has dropped by 0.15% in the past month, falling short of the Consumer Discretionary sector's gain of 0.12% and the S&P 500's gain of 1.2%.

Analysts and investors alike will be keeping a close eye on the performance of Comcast in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.76, showcasing a 20.83% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $32.24 billion, indicating a 1.03% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $4.19 per share and a revenue of $123.64 billion, demonstrating changes of -3.23% and -0.07%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for Comcast. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.07% lower. Comcast is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Comcast's current valuation metrics, including its Forward P/E ratio of 6.52. This expresses a premium compared to the average Forward P/E of 6.05 of its industry.

Investors should also note that CMCSA has a PEG ratio of 1.87 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Cable Television industry had an average PEG ratio of 0.68.

The Cable Television industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 165, placing it within the bottom 34% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the 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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