The latest trading session saw Comcast (CMCSA) ending at $34.63, denoting a -0.92% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily loss of 0.56%. At the same time, the Dow lost 0.58%, and the tech-heavy Nasdaq lost 0.51%.
Coming into today, shares of the cable provider had gained 2.98% in the past month. In that same time, the Consumer Discretionary sector gained 10.54%, while the S&P 500 gained 7.37%.
The investment community will be paying close attention to the earnings performance of Comcast in its upcoming release. The company is predicted to post an EPS of $1.19, indicating a 1.65% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $29.89 billion, up 0.69% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.36 per share and a revenue of $122.2 billion, signifying shifts of +0.69% and -1.24%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Comcast. 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Comcast possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Comcast is presently trading at a Forward P/E ratio of 8.02. This represents a discount compared to its industry's average Forward P/E of 9.21.
Also, we should mention that CMCSA has a PEG ratio of 1.71. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Cable Television industry currently had an average PEG ratio of 0.45 as of yesterday's close.
The Cable Television industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 162, finds itself in the bottom 35% echelons of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Comcast Corporation (CMCSA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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