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

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The latest trading session saw Comcast (CMCSA - Free Report) ending at $35.88, denoting a +1.37% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 1.59%. Meanwhile, the Dow gained 1.39%, and the Nasdaq, a tech-heavy index, added 1.63%.

Shares of the cable provider witnessed a gain of 6.44% over the previous month, beating the performance of the Consumer Discretionary sector with its loss of 1.22% and the S&P 500's loss of 2.42%.

The investment community will be closely monitoring the performance of Comcast in its forthcoming earnings report. On that day, Comcast is projected to report earnings of $1.02 per share, which would represent a year-over-year decline of 1.92%. Alongside, our most recent consensus estimate is anticipating revenue of $29.89 billion, indicating a 0.56% downward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $4.33 per share and revenue of $122.67 billion, which would represent changes of 0% and -0.86%, respectively, from the prior year.

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

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.81% downward. Right now, Comcast possesses a Zacks Rank of #3 (Hold).

Investors should also note Comcast's current valuation metrics, including its Forward P/E ratio of 8.17. For comparison, its industry has an average Forward P/E of 7.88, which means Comcast is trading at a premium to the group.

Meanwhile, CMCSA's PEG ratio is currently 1.73. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Cable Television industry had an average PEG ratio of 1.58.

The Cable Television industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 160, this industry ranks in the bottom 37% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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