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Is Comcast (CMCSA) a Great Value Stock Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Comcast (CMCSA - Free Report) is a stock many investors are watching right now. CMCSA is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 13.29. This compares to its industry's average Forward P/E of 18.25. Over the past 52 weeks, CMCSA's Forward P/E has been as high as 20 and as low as 11.94, with a median of 16.42.

CMCSA is also sporting a PEG ratio of 1.19. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CMCSA's PEG compares to its industry's average PEG of 1.90. Over the last 12 months, CMCSA's PEG has been as high as 2.13 and as low as 1.09, with a median of 1.60.

Another valuation metric that we should highlight is CMCSA's P/B ratio of 2.35. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.86. Within the past 52 weeks, CMCSA's P/B has been as high as 3.54 and as low as 2.01, with a median of 2.72.

Finally, our model also underscores that CMCSA has a P/CF ratio of 4.92. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CMCSA's current P/CF looks attractive when compared to its industry's average P/CF of 6.31. Over the past 52 weeks, CMCSA's P/CF has been as high as 10.31 and as low as 4.34, with a median of 5.91.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Comcast is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CMCSA feels like a great value stock at the moment.


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