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Cisco Systems (CSCO) Gains As Market Dips: What You Should Know
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Cisco Systems (CSCO - Free Report) closed at $44.38 in the latest trading session, marking a +0.05% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.74%. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq lost 0.01%.
Coming into today, shares of the seller of routers, switches, software and services had gained 9.48% in the past month. In that same time, the Computer and Technology sector gained 3.19%, while the S&P 500 gained 4.58%.
Investors will be hoping for strength from Cisco Systems as it approaches its next earnings release, which is expected to be November 16, 2022. The company is expected to report EPS of $0.84, up 2.44% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $13.32 billion, up 3.28% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.53 per share and revenue of $54.08 billion, which would represent changes of +5.06% and +4.89%, respectively, from the prior year.
Any recent changes to analyst estimates for Cisco Systems should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Cisco Systems is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Cisco Systems currently has a Forward P/E ratio of 12.56. Its industry sports an average Forward P/E of 17.25, so we one might conclude that Cisco Systems is trading at a discount comparatively.
Investors should also note that CSCO has a PEG ratio of 1.93 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Networking industry currently had an average PEG ratio of 1.93 as of yesterday's close.
The Computer - Networking industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 34, putting it in the top 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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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Cisco Systems (CSCO) Gains As Market Dips: What You Should Know
Cisco Systems (CSCO - Free Report) closed at $44.38 in the latest trading session, marking a +0.05% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.74%. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq lost 0.01%.
Coming into today, shares of the seller of routers, switches, software and services had gained 9.48% in the past month. In that same time, the Computer and Technology sector gained 3.19%, while the S&P 500 gained 4.58%.
Investors will be hoping for strength from Cisco Systems as it approaches its next earnings release, which is expected to be November 16, 2022. The company is expected to report EPS of $0.84, up 2.44% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $13.32 billion, up 3.28% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.53 per share and revenue of $54.08 billion, which would represent changes of +5.06% and +4.89%, respectively, from the prior year.
Any recent changes to analyst estimates for Cisco Systems should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Cisco Systems is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Cisco Systems currently has a Forward P/E ratio of 12.56. Its industry sports an average Forward P/E of 17.25, so we one might conclude that Cisco Systems is trading at a discount comparatively.
Investors should also note that CSCO has a PEG ratio of 1.93 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Networking industry currently had an average PEG ratio of 1.93 as of yesterday's close.
The Computer - Networking industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 34, putting it in the top 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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.