Here's Why Comcast (CMCSA) Fell More Than Broader Market
Comcast (CMCSA) closed the most recent trading day at $40.54, moving -1.59% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.96%. Elsewhere, the Dow lost 0.94%, while the tech-heavy Nasdaq lost 1.18%.
Coming into today, shares of the cable provider had gained 3.99% in the past month. In that same time, the Consumer Discretionary sector gained 6.56%, while the S&P 500 gained 4.3%.
Market participants will be closely following the financial results of Comcast in its upcoming release. The company plans to announce its earnings on October 31, 2024. It is anticipated that the company will report an EPS of $1.06, marking a 1.85% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $31.79 billion, up 5.57% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.23 per share and revenue of $123.18 billion. These totals would mark changes of +6.28% and +1.32%, respectively, from last year.
Any recent changes to analyst estimates for Comcast should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.12% lower. Comcast is currently a Zacks Rank #4 (Sell).
Investors should also note Comcast's current valuation metrics, including its Forward P/E ratio of 9.74. This represents a discount compared to its industry's average Forward P/E of 10.5.
One should further note that CMCSA currently holds a PEG ratio of 1.1. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Cable Television industry had an average PEG ratio of 0.82.
The Cable Television industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 30, this industry ranks in the top 12% of all industries, numbering over 250.
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.
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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Comcast Corporation (CMCSA) : Free Stock Analysis Report