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

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Comcast (CMCSA - Free Report) closed at $37.55 in the latest trading session, marking a -0.9% move from the prior day. This change lagged the S&P 500's daily loss of 0.08%. Meanwhile, the Dow lost 0.34%, and the Nasdaq, a tech-heavy index, added 11.55%.

Prior to today's trading, shares of the cable provider had gained 7.28% over the past month. This has outpaced the Consumer Discretionary sector's loss of 0.94% and the S&P 500's loss of 1.03% in that time.

Investors will be hoping for strength from Comcast as it approaches its next earnings release, which is expected to be January 26, 2023. In that report, analysts expect Comcast to post earnings of $0.78 per share. This would mark year-over-year growth of 1.3%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $30.46 billion, up 0.4% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Comcast. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.63% lower. Comcast currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Comcast has a Forward P/E ratio of 10.24 right now. Its industry sports an average Forward P/E of 12.88, so we one might conclude that Comcast is trading at a discount comparatively.

It is also worth noting that CMCSA currently has a PEG ratio of 0.79. 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 0.79 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 174, putting it in the bottom 31% 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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