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

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Comcast (CMCSA - Free Report) closed at $45.73 in the latest trading session, marking a +0.2% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.22%. At the same time, the Dow lost 0.31%, and the tech-heavy Nasdaq lost 0.23%.

Coming into today, shares of the cable provider had lost 0.48% in the past month. In that same time, the Consumer Discretionary sector lost 1.21%, while the S&P 500 gained 2.08%.

Comcast will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.94, down 2.08% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $29.69 billion, down 0.52% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.81 per share and revenue of $120.29 billion. These totals would mark changes of +4.67% and -0.94%, respectively, from last year.

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 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Within the past 30 days, our consensus EPS projection remained stagnant. Comcast currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Comcast is currently trading at a Forward P/E ratio of 11.97. This valuation marks a discount compared to its industry's average Forward P/E of 12.66.

Investors should also note that CMCSA has a PEG ratio of 1.27 right now. 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. The Cable Television industry currently had an average PEG ratio of 1.27 as of yesterday's close.

The Cable Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 187, putting it in the bottom 26% 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.

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


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