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Is Comcast (CMCSA) Stock Undervalued Right Now?

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Comcast (CMCSA) is a stock many investors are watching right now. CMCSA is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.76 right now. For comparison, its industry sports an average P/E of 10.55. CMCSA's Forward P/E has been as high as 11.59 and as low as 9.12, with a median of 10.35, all within the past year.

Investors should also note that CMCSA holds a PEG ratio of 0.95. 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. CMCSA's PEG compares to its industry's average PEG of 1.06. Over the last 12 months, CMCSA's PEG has been as high as 1.23 and as low as 0.70, with a median of 0.85.

Investors should also recognize that CMCSA has a P/B ratio of 2.03. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.11. Over the past year, CMCSA's P/B has been as high as 2.30 and as low as 1.81, with a median of 2.03.

Finally, our model also underscores that CMCSA has a P/CF ratio of 5.89. 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 P/CF compares to its industry's average P/CF of 6.64. Within the past 12 months, CMCSA's P/CF has been as high as 9.56 and as low as 5.51, with a median of 8.47.

These are only a few of the key metrics included in Comcast's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CMCSA looks like an impressive value stock at the moment.

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