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

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In the latest trading session, Comcast (CMCSA - Free Report) closed at $44.93, marking a +0.83% move from the previous day. This change outpaced the S&P 500's 0.7% loss on the day. At the same time, the Dow lost 0.57%, and the tech-heavy Nasdaq lost 1.06%.

Coming into today, shares of the cable provider had lost 1.85% in the past month. In that same time, the Consumer Discretionary sector lost 3.82%, while the S&P 500 gained 0.58%.

Comcast will be looking to display strength as it nears its next earnings release. On that day, Comcast is projected to report earnings of $0.94 per share, which would represent a year-over-year decline of 2.08%. Our most recent consensus estimate is calling for quarterly revenue of $29.69 billion, down 0.52% from the year-ago period.

CMCSA's full-year Zacks Consensus Estimates are calling for earnings of $3.81 per share and revenue of $120.29 billion. These results would represent year-over-year changes of +4.67% and -0.94%, respectively.

Any recent changes to analyst estimates for Comcast should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. 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. 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. The Zacks Consensus EPS estimate has moved 0.53% higher within the past month. Comcast is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Comcast is currently trading at a Forward P/E ratio of 11.69. Its industry sports an average Forward P/E of 12.59, so we one might conclude that Comcast is trading at a discount comparatively.

Also, we should mention that CMCSA has a PEG ratio of 1.24. 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. The Cable Television industry currently had an average PEG ratio of 1.24 as of yesterday's close.

The Cable Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 185, putting it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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