Comcast (CMCSA) ended the recent trading session at $24.59, demonstrating a -6.61% change from the preceding day's closing price. This change lagged the S&P 500's 0.48% loss on the day. At the same time, the Dow lost 0.77%, and the tech-heavy Nasdaq lost 0.64%.
The cable provider's shares have seen an increase of 2.65% over the last month, surpassing the Consumer Discretionary sector's loss of 3.74% and the S&P 500's loss of 0.97%.
The upcoming earnings release of Comcast will be of great interest to investors. The company is expected to report EPS of $1.01, down 9.82% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $29.65 billion, down 4.95% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.52 per share and revenue of $120.93 billion, which would represent changes of -18.33% and -2.25%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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 business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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, there's been no change in the Zacks Consensus EPS estimate. Right now, Comcast possesses a Zacks Rank of #3 (Hold).
Digging into valuation, Comcast currently has a Forward P/E ratio of 7.49. This represents a premium compared to its industry average Forward P/E of 5.45.
We can also see that CMCSA currently has a PEG ratio of 1.87. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Cable Television industry currently had an average PEG ratio of 0.72 as of yesterday's close.
The Cable Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 202, which puts it in the bottom 18% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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This article originally published on Zacks Investment Research (zacks.com).