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Is Comcast (CMCSA) a Great Value Stock Right Now?

Zacks Equity Research

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is Comcast (CMCSA). CMCSA is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 13.50. This compares to its industry's average Forward P/E of 17.77. Over the past year, CMCSA's Forward P/E has been as high as 14.59 and as low as 11.94, with a median of 13.66.

Investors will also notice that CMCSA has a PEG ratio of 1.14. 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. CMCSA's PEG compares to its industry's average PEG of 1.50. Over the last 12 months, CMCSA's PEG has been as high as 1.20 and as low as 0.93, with a median of 1.12.

We should also highlight that CMCSA has a P/B ratio of 2.62. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. CMCSA's current P/B looks attractive when compared to its industry's average P/B of 3.04. CMCSA's P/B has been as high as 2.74 and as low as 2.08, with a median of 2.46, over the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CMCSA has a P/S ratio of 1.98. This compares to its industry's average P/S of 2.12.

Finally, investors should note that CMCSA has a P/CF ratio of 8.48. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. CMCSA's current P/CF looks attractive when compared to its industry's average P/CF of 9.57. Over the past year, CMCSA's P/CF has been as high as 8.89 and as low as 4.45, with a median of 8.01.

These are just a handful of the figures considered in Comcast's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CMCSA is an impressive value stock right now.


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