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Why Comcast (CMCSA) Dipped More Than Broader Market Today

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In the latest market close, Comcast (CMCSA - Free Report) reached $39.72, with a -1.07% movement compared to the previous day. This move lagged the S&P 500's daily loss of 0.95%. Meanwhile, the Dow lost 1.09%, and the Nasdaq, a tech-heavy index, lost 0.84%.

The cable provider's shares have seen a decrease of 7.03% over the last month, not keeping up with the Consumer Discretionary sector's loss of 0.94% and the S&P 500's gain of 1.78%.

The upcoming earnings release of Comcast will be of great interest to investors. The company's earnings report is expected on April 25, 2024. In that report, analysts expect Comcast to post earnings of $0.98 per share. This would mark year-over-year growth of 6.52%. Alongside, our most recent consensus estimate is anticipating revenue of $29.81 billion, indicating a 0.39% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $4.23 per share and a revenue of $124.52 billion, demonstrating changes of +6.28% and +2.42%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for Comcast. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.84% lower. Currently, Comcast is carrying a Zacks Rank of #4 (Sell).

Looking at valuation, Comcast is presently trading at a Forward P/E ratio of 9.49. This represents a premium compared to its industry's average Forward P/E of 9.21.

Meanwhile, CMCSA's PEG ratio is currently 0.98. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Cable Television was holding an average PEG ratio of 0.7 at yesterday's closing price.

The Cable Television industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 243, this industry ranks in the bottom 4% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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