Comcast (CMCSA) Falls More Than Wider Markets: What You Should Know
Comcast (CMCSA) closed at $39.17 in the last trading session, recording a -1.98% move from the day before. This change delayed the S&P 500’s daily loss of 1.15%. Meanwhile, the Dow Jones lost 0.52%, and the tech-heavy Nasdaq lost 0.34%.
Heading into the day, the cable provider’s shares have lost 4.01% over the past month, outpacing the consumer discretionary sector’s 8.89% loss and the S&P 500’s 5.08% loss in that time.
Wall Street will be looking for positivity from Comcast as it approaches the next earnings report date. This is expected to be on July 28, 2022. On that day, Comcast is expected to report earnings of $0.92 per share, representing a year-over-year growth of 9.52%. Our latest consensus estimate calls for quarterly revenue of $29.86 billion, up 4.59% over the same period last year.
For the full year, our Zacks Consensus estimates expect earnings of $3.61 per share and revenue of $122.78 billion, which would represent changes of +11.76% and +5.49%, respectively, from the prior year.
Investors may also note recent changes in Comcast analyst estimates. Recent reviews tend to reflect the latest near-term business trends. With this in mind, we can take the positive rating reviews as a sign of optimism about the company’s business outlook.
Based on our research, we believe that these discretionary reviews are directly related to stock movements close to the team. Investors can take advantage of this using Zacks Rank. This model takes into account these changes in grading and provides a simple and actionable rating system.
The Zacks Rank system ranges from #1 (strong buy) to #5 (strong sell). It has a successful, externally audited track record, with the No. 1 stock generating an average annual return of over 25% since 1988. Over the past month, Zacks Consensus EPS estimate is down 0.04%. Comcast holds a Zacks rating of #4 (sell) at the moment.
When researching valuation, Comcast currently has a forward P/E ratio of 11.06. Its industry has an average forward P/E of 15.85, so one might conclude that Comcast is trading at a relatively discount.
Meanwhile, the CMCSA’s price to book ratio is currently 0.8. The P/E ratio is similar to the widely used P/E ratio, but this metric also takes into account a company’s expected earnings growth rate. CMCSA Industry Average PEG ratio was 1.02 as of yesterday’s close.
The cable television industry is part of the discretionary consumer sector. The industry currently has a Zacks Industry Rating of 144, placing it in the lowest 43% of all 250-plus industries.
Zacks Industry Ranks are listed in order from best to worst in terms of the average Zacks rating of individual companies in each of these sectors. Our research shows that the top 50% ranked industries outperform the bottom half by a factor of 2 to 1.
To follow the CMCSA in upcoming trading sessions, be sure to use Zacks.com.
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