What Investors Need to Know

Comcast (CMCSA) closed at $36.45 in the latest trading session, marking a +0.25% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.16% for the day. Meanwhile, the Dow gained 0.86%, and the Nasdaq, a tech-heavy index, lost 0.38%.

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Shares of the cable provider have depreciated by 8.92% over the course of the past month, underperforming the Consumer Discretionary sector’s loss of 5.64% and the S&P 500’s loss of 2.2%.

The upcoming earnings release of Comcast will be of great interest to investors. The company’s earnings report is expected on January 30, 2025. In that report, analysts expect Comcast to post earnings of $0.88 per share. This would mark year-over-year growth of 4.76%. Our most recent consensus estimate is calling for quarterly revenue of $31.63 billion, up 1.21% from the year-ago period.

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It’s also important for investors to be aware of any recent modifications to analyst estimates for Comcast. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company’s business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.72% lower. As of now, Comcast holds a Zacks Rank of #3 (Hold).

In terms of valuation, Comcast is presently being traded at a Forward P/E ratio of 8.24. This indicates a discount in contrast to its industry’s Forward P/E of 8.78.

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Also, we should mention that CMCSA has a PEG ratio of 1.32. 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 0.73.

The Cable Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 91, putting it in the top 37% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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