Why Comcast (CMCSA) Dipped More Than Broader Market Today

In the latest trading session, Comcast (CMCSA) closed at $30.57, marking a -1.61% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.08%. Meanwhile, the Dow lost 0.61%, and the Nasdaq, a tech-heavy index, added 0.08%.

Prior to today's trading, shares of the cable provider had lost 3.84% lagged the Consumer Discretionary sector's loss of 3.48% and the S&P 500's loss of 2.16%.

The investment community will be closely monitoring the performance of Comcast in its forthcoming earnings report. The company is forecasted to report an EPS of $0.88, showcasing a 19.27% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $30.71 billion, indicating a 2.75% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $3.68 per share and a revenue of $123.16 billion, demonstrating changes of -14.62% and -0.45%, respectively, from the preceding year.

Any recent changes to analyst estimates for Comcast should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.15% decrease. Comcast currently has a Zacks Rank of #5 (Strong Sell).

Digging into valuation, Comcast currently has a Forward P/E ratio of 8.43. This signifies a premium in comparison to the average Forward P/E of 6.72 for its industry.

Investors should also note that CMCSA has a PEG ratio of 2.42 right now. 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. The average PEG ratio for the Cable Television industry stood at 0.64 at the close of the market yesterday.

The Cable Television industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 88, finds itself in the top 36% echelons of all 250+ industries.

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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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