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

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Comcast (CMCSA) closed at $39.17 in the latest trading session, marking a -1.98% move from the prior day. This change lagged the S&P 500's daily loss of 1.15%. Meanwhile, the Dow lost 0.52%, and the Nasdaq, a tech-heavy index, lost 0.34%.

Heading into today, shares of the cable provider had lost 4.01% over the past month, outpacing the Consumer Discretionary sector's loss of 8.89% and the S&P 500's loss of 5.08% in that time.

Wall Street will be looking for positivity from Comcast as it approaches its next earnings report date. This is expected to be July 28, 2022. On that day, Comcast is projected to report earnings of $0.92 per share, which would represent year-over-year growth of 9.52%. Our most recent consensus estimate is calling for quarterly revenue of $29.86 billion, up 4.59% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.61 per share and revenue of $122.78 billion, which would represent changes of +11.76% and +5.49%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Comcast. 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.

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 0.04% lower. Comcast is holding a Zacks Rank of #4 (Sell) right now.

Digging into valuation, Comcast currently has a Forward P/E ratio of 11.06. Its industry sports an average Forward P/E of 15.85, so we one might conclude that Comcast is trading at a discount comparatively.

Meanwhile, CMCSA's PEG ratio is currently 0.8. 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. CMCSA's industry had an average PEG ratio of 1.02 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 144, which puts it in the bottom 43% 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.

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


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