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Is Comcast (CMCSA) a Great Value Stock Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is Comcast (CMCSA - Free Report) . CMCSA is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 13.06, which compares to its industry's average of 17.95. Over the last 12 months, CMCSA's Forward P/E has been as high as 14.59 and as low as 11.94, with a median of 13.55.

CMCSA is also sporting a PEG ratio of 1.10. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CMCSA's industry currently sports an average PEG of 1.52. Over the last 12 months, CMCSA's PEG has been as high as 1.20 and as low as 0.93, with a median of 1.11.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CMCSA has a P/S ratio of 1.85. This compares to its industry's average P/S of 2.34.

Finally, our model also underscores that CMCSA has a P/CF ratio of 8.04. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 9.17. Over the past year, CMCSA's P/CF has been as high as 8.53 and as low as 4.45, with a median of 7.62.

These are only a few of the key metrics included in Comcast's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CMCSA looks like an impressive value stock at the moment.


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