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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 $45.23, moving -0.7% from the previous trading session. This change lagged the S&P 500's daily loss of 0.14%. At the same time, the Dow lost 0.11%, and the tech-heavy Nasdaq lost 0.1%.

Prior to today's trading, shares of the cable provider had lost 3.02% over the past month. This has was narrower than the Consumer Discretionary sector's loss of 3.5% and lagged the S&P 500's loss of 0.91% in that time.

CMCSA will be looking to display strength as it nears its next earnings release, which is expected to be October 24, 2019. The company is expected to report EPS of $0.75, up 15.38% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $27.13 billion, up 22.55% from the year-ago period.

CMCSA's full-year Zacks Consensus Estimates are calling for earnings of $3.07 per share and revenue of $109.57 billion. These results would represent year-over-year changes of +20.39% and +15.94%, respectively.

Investors should also note any recent changes to analyst estimates for CMCSA. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.66% lower within the past month. CMCSA currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that CMCSA has a Forward P/E ratio of 14.85 right now. This represents a discount compared to its industry's average Forward P/E of 18.14.

Meanwhile, CMCSA's PEG ratio is currently 1.25. 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. The Cable Television industry currently had an average PEG ratio of 2.35 as of yesterday's close.

The Cable Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 101, putting it in the top 40% 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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