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

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Comcast (CMCSA - Free Report) closed the most recent trading day at $41.14, moving -0.39% from the previous trading session. This change lagged the S&P 500's 0.61% gain on the day. Meanwhile, the Dow gained 0.71%, and the Nasdaq, a tech-heavy index, added 0.53%.

Prior to today's trading, shares of the cable provider had lost 2.94% over the past month. This has was narrower than the Consumer Discretionary sector's loss of 4.98% and the S&P 500's loss of 3.77% in that time.

Wall Street will be looking for positivity from CMCSA as it approaches its next earnings report date. On that day, CMCSA is projected to report earnings of $0.74 per share, which would represent year-over-year growth of 13.85%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $27.58 billion, up 26.89% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3 per share and revenue of $111.76 billion. These totals would mark changes of +17.65% and +18.25%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for CMCSA. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.07% higher. CMCSA is currently a Zacks Rank #2 (Buy).

Valuation is also important, so investors should note that CMCSA has a Forward P/E ratio of 13.78 right now. For comparison, its industry has an average Forward P/E of 29.47, which means CMCSA is trading at a discount to the group.

We can also see that CMCSA currently has a PEG ratio of 1.16. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CMCSA's industry had an average PEG ratio of 2.19 as of yesterday's close.

The Cable Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 159, which puts it in the bottom 38% 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.

To follow CMCSA in the coming trading sessions, be sure to utilize Zacks.com.


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