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Comcast (CMCSA) Gains As Market Dips: What You Should Know

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Comcast (CMCSA - Free Report) closed the most recent trading day at $47.61, moving +0.4% from the previous trading session. This change outpaced the S&P 500's 1.69% loss on the day. Meanwhile, the Dow lost 1.19%, and the Nasdaq, a tech-heavy index, added 0.14%.

Prior to today's trading, shares of the cable provider had gained 5.33% over the past month. This has outpaced the Consumer Discretionary sector's gain of 3.92% and lagged the S&P 500's gain of 7.88% in that time.

Investors will be hoping for strength from Comcast as it approaches its next earnings release, which is expected to be April 28, 2022. The company is expected to report EPS of $0.80, up 5.26% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $30.4 billion, up 11.73% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.52 per share and revenue of $122.18 billion. These totals would mark changes of +8.98% and +4.98%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Comcast. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.45% higher 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 13.45. For comparison, its industry has an average Forward P/E of 18.7, which means Comcast is trading at a discount to the group.

We can also see that CMCSA currently has a PEG ratio of 1.01. 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 industry had an average PEG ratio of 1.52 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 212, which puts it in the bottom 17% 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.

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


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