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Comcast (CMCSA) Gains But Lags Market: What You Should Know

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In the latest trading session, Comcast (CMCSA - Free Report) closed at $40.42, marking a +0.02% move from the previous day. This change lagged the S&P 500's 0.46% gain on the day. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, added 0.59%.

Heading into today, shares of the cable provider had gained 5.29% over the past month, outpacing the Consumer Discretionary sector's gain of 1.83% and the S&P 500's gain of 3.24% in that time.

CMCSA will be looking to display strength as it nears its next earnings release, which is expected to be April 25, 2019. In that report, analysts expect CMCSA to post earnings of $0.64 per share. This would mark year-over-year growth of 3.23%. Our most recent consensus estimate is calling for quarterly revenue of $27.33 billion, up 19.92% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.76 per share and revenue of $112.43 billion. These totals would mark changes of +8.24% and +18.97%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for CMCSA. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.08% higher within the past month. CMCSA is currently sporting a Zacks Rank of #2 (Buy).

Digging into valuation, CMCSA currently has a Forward P/E ratio of 14.64. For comparison, its industry has an average Forward P/E of 26.01, which means CMCSA is trading at a discount to the group.

Meanwhile, CMCSA's PEG ratio is currently 1.2. 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. The Cable Television was holding an average PEG ratio of 2.12 at yesterday's closing price.

The Cable Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.




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