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Comcast (CMCSA) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Comcast (CMCSA - Free Report) closed at $28.68, marking a -1.54% move from the previous day. This move lagged the S&P 500's daily loss of 0.65%. Elsewhere, the Dow gained 0.12%, while the tech-heavy Nasdaq added 0.03%.

Prior to today's trading, shares of the cable provider had lost 18.38% over the past month. This has lagged the Consumer Discretionary sector's loss of 14.11% and the S&P 500's loss of 11.07% in that time.

Investors will be hoping for strength from Comcast as it approaches its next earnings release, which is expected to be October 27, 2022. In that report, analysts expect Comcast to post earnings of $0.89 per share. This would mark year-over-year growth of 2.3%. Our most recent consensus estimate is calling for quarterly revenue of $29.82 billion, down 1.59% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.62 per share and revenue of $121.77 billion. These totals would mark changes of +12.07% and +4.62%, respectively, from last year.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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.

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 0.14% lower. Comcast is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Comcast is holding a Forward P/E ratio of 8.05. This valuation marks a discount compared to its industry's average Forward P/E of 12.44.

We can also see that CMCSA currently has a PEG ratio of 0.6. 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 0.6 as of yesterday's close.

The Cable Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 166, putting it in the bottom 35% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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