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Comcast (CMCSA) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

Comcast (CMCSA) closed the most recent trading day at $44.43, moving -1.46% from the previous trading session. This change lagged the S&P 500's daily loss of 0.65%. At the same time, the Dow lost 0.42%, and the tech-heavy Nasdaq lost 0.46%.

Prior to today's trading, shares of the cable provider had gained 4.25% over the past month. This has lagged the Consumer Discretionary sector's gain of 4.4% and outpaced the S&P 500's gain of 4.11% in that time.

Investors will be hoping for strength from CMCSA as it approaches its next earnings release, which is expected to be July 25, 2019. On that day, CMCSA is projected to report earnings of $0.75 per share, which would represent year-over-year growth of 15.38%. Our most recent consensus estimate is calling for quarterly revenue of $27.30 billion, up 25.6% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.03 per share and revenue of $111.12 billion. These totals would mark changes of +18.82% and +17.58%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for CMCSA. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.52% higher. CMCSA is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note CMCSA's current valuation metrics, including its Forward P/E ratio of 14.86. This represents a discount compared to its industry's average Forward P/E of 28.65.

Meanwhile, CMCSA's PEG ratio is currently 1.26. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Cable Television was holding an average PEG ratio of 2.25 at yesterday's closing price.

The Cable Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 55, putting it in the top 22% 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.

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

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