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Cisco Systems (CSCO) Stock Sinks As Market Gains: What You Should Know
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Cisco Systems (CSCO - Free Report) closed the most recent trading day at $48.57, moving -0.21% from the previous trading session. This change lagged the S&P 500's 1.05% gain on the day. Meanwhile, the Dow gained 0.02%, and the Nasdaq, a tech-heavy index, added 9.7%.
Coming into today, shares of the seller of routers, switches, software and services had gained 1.52% in the past month. In that same time, the Computer and Technology sector gained 11.44%, while the S&P 500 gained 6.27%.
Cisco Systems will be looking to display strength as it nears its next earnings release, which is expected to be February 15, 2023. The company is expected to report EPS of $0.85, up 1.19% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.43 billion, up 5.61% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.54 per share and revenue of $54.47 billion. These totals would mark changes of +5.36% and +5.64%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Cisco Systems. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection remained stagnant. Cisco Systems is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Cisco Systems is holding a Forward P/E ratio of 13.74. This represents a discount compared to its industry's average Forward P/E of 21.86.
We can also see that CSCO currently has a PEG ratio of 2.11. 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. Computer - Networking stocks are, on average, holding a PEG ratio of 2.11 based on yesterday's closing prices.
The Computer - Networking industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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) Stock Sinks As Market Gains: What You Should Know
Cisco Systems (CSCO - Free Report) closed the most recent trading day at $48.57, moving -0.21% from the previous trading session. This change lagged the S&P 500's 1.05% gain on the day. Meanwhile, the Dow gained 0.02%, and the Nasdaq, a tech-heavy index, added 9.7%.
Coming into today, shares of the seller of routers, switches, software and services had gained 1.52% in the past month. In that same time, the Computer and Technology sector gained 11.44%, while the S&P 500 gained 6.27%.
Cisco Systems will be looking to display strength as it nears its next earnings release, which is expected to be February 15, 2023. The company is expected to report EPS of $0.85, up 1.19% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.43 billion, up 5.61% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.54 per share and revenue of $54.47 billion. These totals would mark changes of +5.36% and +5.64%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Cisco Systems. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection remained stagnant. Cisco Systems is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Cisco Systems is holding a Forward P/E ratio of 13.74. This represents a discount compared to its industry's average Forward P/E of 21.86.
We can also see that CSCO currently has a PEG ratio of 2.11. 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. Computer - Networking stocks are, on average, holding a PEG ratio of 2.11 based on yesterday's closing prices.
The Computer - Networking industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.