In the latest trading session, Comcast (CMCSA) closed at $46.67, marking a +0.86% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.26%. Elsewhere, the Dow gained 0.13%, while the tech-heavy Nasdaq added 0.4%.
Prior to today's trading, shares of the cable provider had gained 5.16% over the past month. This has lagged the Consumer Discretionary sector's gain of 5.52% and outpaced the S&P 500's gain of 3.92% in that time.
CMCSA will be looking to display strength as it nears its next earnings release, which is expected to be October 24, 2019. 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, the Zacks Consensus Estimate for revenue is projecting net sales of $27.43 billion, up 23.92% from the year-ago period.
CMCSA's full-year Zacks Consensus Estimates are calling for earnings of $3.09 per share and revenue of $110.05 billion. These results would represent year-over-year changes of +21.18% and +16.45%, respectively.
Investors should also note any recent changes to analyst estimates for CMCSA. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. The Zacks Consensus EPS estimate has moved 0.34% higher within the past month. CMCSA is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note CMCSA's current valuation metrics, including its Forward P/E ratio of 14.95. For comparison, its industry has an average Forward P/E of 18.23, which means CMCSA is trading at a discount to the group.
Also, we should mention that CMCSA has a PEG ratio of 1.26. 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 2.26 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 157, putting it in the bottom 39% 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.
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