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Why Comcast (CMCSA) Outpaced the Stock Market Today

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Comcast (CMCSA - Free Report) closed the latest trading day at $39.31, indicating a +1.63% change from the previous session's end. The stock outperformed the S&P 500, which registered a daily gain of 0.75%. Elsewhere, the Dow gained 0.58%, while the tech-heavy Nasdaq added 1%.

The cable provider's shares have seen a decrease of 0.85% over the last month, not keeping up with the Consumer Discretionary sector's gain of 8.75% and the S&P 500's gain of 4.03%.

Analysts and investors alike will be keeping a close eye on the performance of Comcast in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.06, signifying a 1.85% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $31.7 billion, indicating a 5.27% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $4.23 per share and revenue of $123.02 billion, which would represent changes of +6.28% and +1.19%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Comcast. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

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 past month, the Zacks Consensus EPS estimate has remained steady. As of now, Comcast holds a Zacks Rank of #3 (Hold).

Looking at its valuation, Comcast is holding a Forward P/E ratio of 9.14. This signifies a discount in comparison to the average Forward P/E of 10.12 for its industry.

One should further note that CMCSA currently holds a PEG ratio of 1.03. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Cable Television was holding an average PEG ratio of 0.82 at yesterday's closing price.

The Cable Television industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 47, positioning it in the top 19% 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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