In the latest trading session, Comcast (CMCSA) closed at $23.81, marking a +2.06% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 2.65%. Meanwhile, the Dow experienced a drop of 1.35%, and the technology-dominated Nasdaq saw a decrease of 4.18%.
The cable provider's shares have seen a decrease of 11.09% over the last month, not keeping up with the Consumer Discretionary sector's loss of 0.12% and the S&P 500's gain of 5.47%.
Analysts and investors alike will be keeping a close eye on the performance of Comcast in its upcoming earnings disclosure. The company is expected to report EPS of $0.98, down 21.6% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $29.32 billion, reflecting a 3.27% fall from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.53 per share and revenue of $122.01 billion. These totals would mark changes of -18.1% and -1.38%, respectively, from last 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.26% lower within the past month. At present, Comcast boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Comcast is currently trading at a Forward P/E ratio of 6.61. This expresses a premium compared to the average Forward P/E of 4.81 of its industry.
Investors should also note that CMCSA has a PEG ratio of 1.9 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Cable Television stocks are, on average, holding a PEG ratio of 0.58 based on yesterday's closing prices.
The Cable Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 231, which puts it in the bottom 6% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).