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

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Comcast (CMCSA - Free Report) closed at $51.14 in the latest trading session, marking a +1.23% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.92%. At the same time, the Dow added 0.51%, and the tech-heavy Nasdaq gained 0.54%.

Prior to today's trading, shares of the cable provider had gained 5.89% over the past month. This has outpaced the Consumer Discretionary sector's loss of 3.45% and the S&P 500's loss of 0.85% in that time.

Investors will be hoping for strength from Comcast as it approaches its next earnings release, which is expected to be January 27, 2022. The company is expected to report EPS of $0.74, up 32.14% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $29.83 billion, up 7.66% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Comcast. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.1% lower within the past month. Comcast currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Comcast is holding a Forward P/E ratio of 13.63. This valuation marks a discount compared to its industry's average Forward P/E of 18.11.

We can also see that CMCSA currently has a PEG ratio of 0.92. 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. CMCSA's industry had an average PEG ratio of 1.51 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 224, which puts it in the bottom 13% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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