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

·3 min read

Comcast (CMCSA) closed the most recent trading day at $31.84, moving -1.94% from the previous trading session. This change lagged the S&P 500's daily loss of 1.72%. At the same time, the Dow lost 1.62%, and the tech-heavy Nasdaq gained 0.09%.

Prior to today's trading, shares of the cable provider had lost 13.64% over the past month. This has lagged the Consumer Discretionary sector's loss of 10.47% and the S&P 500's loss of 9.09% in that time.

Investors will be hoping for strength from Comcast as it approaches its next earnings release. The company is expected to report EPS of $0.89, up 2.3% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $29.9 billion, down 1.31% from the prior-year quarter.

CMCSA's full-year Zacks Consensus Estimates are calling for earnings of $3.62 per share and revenue of $121.92 billion. These results would represent year-over-year changes of +12.07% and +4.75%, respectively.

It is also important to note the recent changes to analyst estimates for Comcast. These revisions help to show the ever-changing nature of 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. 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. The Zacks Consensus EPS estimate has moved 0.16% lower within the past month. Comcast is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Comcast is holding a Forward P/E ratio of 8.97. Its industry sports an average Forward P/E of 12.85, so we one might conclude that Comcast is trading at a discount comparatively.

Investors should also note that CMCSA has a PEG ratio of 0.66 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. The Cable Television was holding an average PEG ratio of 0.66 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 79, which puts it in the top 32% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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