Comcast (CMCSA) Gains But Lags Market: What You Should Know

Comcast (CMCSA) closed at $30.99 in the latest trading session, marking a +1.18% move from the prior day. This move lagged the S&P 500's daily gain of 3.06%. At the same time, the Dow added 2.8%, and the tech-heavy Nasdaq gained 0.19%.

Heading into today, shares of the cable provider had lost 14.35% over the past month, lagging the Consumer Discretionary sector's loss of 9.97% and the S&P 500's loss of 6.15% in that time.

Comcast will be looking to display strength as it nears its next earnings release, which is expected to be October 27, 2022. The company is expected to report EPS of $0.89, up 2.3% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $29.9 billion, down 1.31% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.62 per share and revenue of $121.92 billion. These totals would mark changes of +12.07% and +4.75%, respectively, from last year.

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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.15% lower. Comcast is currently a Zacks Rank #3 (Hold).

Investors should also note Comcast's current valuation metrics, including its Forward P/E ratio of 8.46. This represents a discount compared to its industry's average Forward P/E of 12.77.

We can also see that CMCSA currently has a PEG ratio of 0.64. 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 0.64 based on yesterday's closing prices.

The Cable Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 101, which puts it in the top 41% 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.

To follow CMCSA in the coming trading sessions, be sure to utilize Zacks.com.

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