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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 $34, moving -1.36% from the previous trading session. This move lagged the S&P 500's daily loss of 1.13%. At the same time, the Dow lost 0.56%, and the tech-heavy Nasdaq gained 0.16%.

Heading into today, shares of the cable provider had lost 12.2% over the past month, lagging the Consumer Discretionary sector's loss of 8.88% and the S&P 500's loss of 7.59% in that time.

Comcast will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.89, up 2.3% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $29.92 billion, down 1.24% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.63 per share and revenue of $122 billion. These totals would mark changes of +12.38% and +4.83%, respectively, from last year.

Any recent changes to analyst estimates for Comcast should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Comcast is currently a Zacks Rank #3 (Hold).

Digging into valuation, Comcast currently has a Forward P/E ratio of 9.51. Its industry sports an average Forward P/E of 14.21, so we one might conclude that Comcast is trading at a discount comparatively.

Also, we should mention that CMCSA has a PEG ratio of 0.7. 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. Cable Television stocks are, on average, holding a PEG ratio of 0.7 based on yesterday's closing prices.

The Cable Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 33% 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.

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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