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

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In the latest trading session, Comcast (CMCSA - Free Report) closed at $43.53, marking a -0.11% move from the previous day. This move lagged the S&P 500's daily gain of 0.72%. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.91%.

Prior to today's trading, shares of the cable provider had lost 4.11% over the past month. This has lagged the Consumer Discretionary sector's gain of 3.38% and the S&P 500's gain of 2.64% in that time.

Wall Street will be looking for positivity from CMCSA as it approaches its next earnings report date. This is expected to be January 23, 2020. On that day, CMCSA is projected to report earnings of $0.76 per share, which would represent year-over-year growth of 18.75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $28.24 billion, up 1.41% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.10 per share and revenue of $108.79 billion, which would represent changes of +21.57% and +15.11%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for CMCSA. Recent revisions tend to reflect the latest near-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. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% higher. CMCSA currently has a Zacks Rank of #3 (Hold).

Digging into valuation, CMCSA currently has a Forward P/E ratio of 14.08. Its industry sports an average Forward P/E of 18.52, so we one might conclude that CMCSA is trading at a discount comparatively.

Investors should also note that CMCSA has a PEG ratio of 1.16 right now. 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 industry had an average PEG ratio of 2.84 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 34, which puts it in the top 14% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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