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Comcast (CMCSA) Gains But Lags Market: What You Should Know

Zacks Equity Research

Comcast (CMCSA) closed at $39.60 in the latest trading session, marking a +0.13% move from the prior day. This move lagged the S&P 500's daily gain of 0.48%. Meanwhile, the Dow lost 0.07%, and the Nasdaq, a tech-heavy index, added 1.29%.

Investors will be hoping for strength from CMCSA as it approaches its next earnings release. In that report, analysts expect CMCSA to post earnings of $0.59 per share. This would mark a year-over-year decline of 24.36%. Meanwhile, our latest consensus estimate is calling for revenue of $24.96 billion, down 7.08% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.54 per share and revenue of $105.66 billion. These totals would mark changes of -18.85% and -3.02%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for CMCSA. These recent revisions tend to reflect the evolving nature of short-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. 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 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 9.09% lower within the past month. CMCSA is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, CMCSA is currently trading at a Forward P/E ratio of 15.56. Its industry sports an average Forward P/E of 30.71, so we one might conclude that CMCSA is trading at a discount comparatively.

Also, we should mention that CMCSA has a PEG ratio of 1.66. 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 industry currently had an average PEG ratio of 2.9 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 147, which puts it in the bottom 43% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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