Comcast (CMCSA) Outpaces Stock Market Gains: What You Should Know
Comcast (CMCSA) closed at $43.32 in the latest trading session, marking a +1% move from the prior day. This change outpaced the S&P 500's 0.77% gain on the day. Meanwhile, the Dow gained 0.67%, and the Nasdaq, a tech-heavy index, added 0.75%.
Prior to today's trading, shares of the cable provider had gained 3.6% over the past month. This has lagged the Consumer Discretionary sector's gain of 7.72% and the S&P 500's gain of 8.19% in that time.
Wall Street will be looking for positivity from CMCSA as it approaches its next earnings report date. This is expected to be July 25, 2019. On that day, CMCSA is projected to report earnings of $0.75 per share, which would represent year-over-year growth of 15.38%. Meanwhile, our latest consensus estimate is calling for revenue of $27.40 billion, up 26.07% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.02 per share and revenue of $111.26 billion, which would represent changes of +18.43% and +17.73%, respectively, from the prior year.
Any recent changes to analyst estimates for CMCSA should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.65% higher. CMCSA is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, CMCSA is currently trading at a Forward P/E ratio of 14.22. This valuation marks a discount compared to its industry's average Forward P/E of 28.5.
Investors should also note that CMCSA has a PEG ratio of 1.21 right now. 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. CMCSA's industry had an average PEG ratio of 2.25 as of yesterday's close.
The Cable Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 87, putting it in the top 34% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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