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Comcast (CMCSA) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Comcast (CMCSA) closed at $44.26 in the latest trading session, marking a +0.2% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.06%. Meanwhile, the Dow gained 0.16%, and the Nasdaq, a tech-heavy index, lost 0.13%.

Prior to today's trading, shares of the cable provider had gained 3.01% over the past month. This has outpaced the Consumer Discretionary sector's loss of 5.09% and the S&P 500's loss of 2.95% in that time.

Wall Street will be looking for positivity from CMCSA as it approaches its next earnings report date. In that report, analysts expect CMCSA to post earnings of $0.76 per share. This would mark year-over-year growth of 16.92%. Meanwhile, our latest consensus estimate is calling for revenue of $27.51 billion, up 24.27% from the prior-year quarter.

CMCSA's full-year Zacks Consensus Estimates are calling for earnings of $3.10 per share and revenue of $110.19 billion. These results would represent year-over-year changes of +21.57% and +16.59%, respectively.

Investors might also notice recent changes to analyst estimates for CMCSA. These revisions help to show the ever-changing nature of near-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, 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. Within the past 30 days, our consensus EPS projection has moved 0.69% higher. CMCSA currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, CMCSA is holding a Forward P/E ratio of 14.26. This represents a discount compared to its industry's average Forward P/E of 20.23.

We can also see that CMCSA currently has a PEG ratio of 1.2. 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. Cable Television stocks are, on average, holding a PEG ratio of 2.15 based on yesterday's closing prices.

The Cable Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 112, putting it in the top 44% 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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