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Cisco Systems (CSCO) Gains But Lags Market: What You Should Know
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Cisco Systems (CSCO - Free Report) closed at $44.55 in the latest trading session, marking a +0.07% move from the prior day. This move lagged the S&P 500's daily gain of 0.96%. At the same time, the Dow added 1.31%, and the tech-heavy Nasdaq lost 0.14%.
Heading into today, shares of the seller of routers, switches, software and services had gained 10.55% over the past month, outpacing the Computer and Technology sector's loss of 7.82% and the S&P 500's loss of 0.41% in that time.
Investors will be hoping for strength from Cisco Systems as it approaches its next earnings release, which is expected to be November 16, 2022. On that day, Cisco Systems is projected to report earnings of $0.84 per share, which would represent year-over-year growth of 2.44%. Our most recent consensus estimate is calling for quarterly revenue of $13.32 billion, up 3.28% from the year-ago period.
CSCO's full-year Zacks Consensus Estimates are calling for earnings of $3.53 per share and revenue of $54.08 billion. These results would represent year-over-year changes of +5.06% and +4.89%, respectively.
Investors should also note any recent changes to analyst estimates for Cisco Systems. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Cisco Systems is currently a Zacks Rank #3 (Hold).
Digging into valuation, Cisco Systems currently has a Forward P/E ratio of 12.61. Its industry sports an average Forward P/E of 17.64, so we one might conclude that Cisco Systems is trading at a discount comparatively.
We can also see that CSCO currently has a PEG ratio of 1.94. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. CSCO's industry had an average PEG ratio of 1.94 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 75, putting it in the top 30% 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.
To follow CSCO in the coming trading sessions, be sure to utilize Zacks.com.
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Cisco Systems (CSCO) Gains But Lags Market: What You Should Know
Cisco Systems (CSCO - Free Report) closed at $44.55 in the latest trading session, marking a +0.07% move from the prior day. This move lagged the S&P 500's daily gain of 0.96%. At the same time, the Dow added 1.31%, and the tech-heavy Nasdaq lost 0.14%.
Heading into today, shares of the seller of routers, switches, software and services had gained 10.55% over the past month, outpacing the Computer and Technology sector's loss of 7.82% and the S&P 500's loss of 0.41% in that time.
Investors will be hoping for strength from Cisco Systems as it approaches its next earnings release, which is expected to be November 16, 2022. On that day, Cisco Systems is projected to report earnings of $0.84 per share, which would represent year-over-year growth of 2.44%. Our most recent consensus estimate is calling for quarterly revenue of $13.32 billion, up 3.28% from the year-ago period.
CSCO's full-year Zacks Consensus Estimates are calling for earnings of $3.53 per share and revenue of $54.08 billion. These results would represent year-over-year changes of +5.06% and +4.89%, respectively.
Investors should also note any recent changes to analyst estimates for Cisco Systems. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Cisco Systems is currently a Zacks Rank #3 (Hold).
Digging into valuation, Cisco Systems currently has a Forward P/E ratio of 12.61. Its industry sports an average Forward P/E of 17.64, so we one might conclude that Cisco Systems is trading at a discount comparatively.
We can also see that CSCO currently has a PEG ratio of 1.94. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. CSCO's industry had an average PEG ratio of 1.94 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 75, putting it in the top 30% 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.
To follow CSCO in the coming trading sessions, be sure to utilize Zacks.com.