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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 at $47.26 in the latest trading session, marking a -0.19% move from the prior day. This move lagged the S&P 500's daily gain of 0.47%. Meanwhile, the Dow gained 0.68%, and the Nasdaq, a tech-heavy index, added 0.74%.
Prior to today's trading, shares of the seller of routers, switches, software and services had gained 9.58% over the past month. This has lagged the Computer and Technology sector's gain of 9.76% and outpaced the S&P 500's gain of 7.71% in that time.
Investors will be hoping for strength from CSCO as it approaches its next earnings release, which is expected to be February 13, 2019. In that report, analysts expect CSCO to post earnings of $0.72 per share. This would mark year-over-year growth of 14.29%. Meanwhile, our latest consensus estimate is calling for revenue of $12.40 billion, up 4.32% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.02 per share and revenue of $51.49 billion. These totals would mark changes of +16.15% and +4.37%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for CSCO. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% higher. CSCO is currently a Zacks Rank #3 (Hold).
Investors should also note CSCO's current valuation metrics, including its Forward P/E ratio of 15.7. For comparison, its industry has an average Forward P/E of 15.7, which means CSCO is trading at a no noticeable deviation to the group.
Also, we should mention that CSCO has a PEG ratio of 2.48. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CSCO's industry had an average PEG ratio of 2.23 as of yesterday's close.
The Computer - Networking industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 22, which puts it in the top 9% 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.
Be sure to follow all of these stock-moving metrics, and many 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 at $47.26 in the latest trading session, marking a -0.19% move from the prior day. This move lagged the S&P 500's daily gain of 0.47%. Meanwhile, the Dow gained 0.68%, and the Nasdaq, a tech-heavy index, added 0.74%.
Prior to today's trading, shares of the seller of routers, switches, software and services had gained 9.58% over the past month. This has lagged the Computer and Technology sector's gain of 9.76% and outpaced the S&P 500's gain of 7.71% in that time.
Investors will be hoping for strength from CSCO as it approaches its next earnings release, which is expected to be February 13, 2019. In that report, analysts expect CSCO to post earnings of $0.72 per share. This would mark year-over-year growth of 14.29%. Meanwhile, our latest consensus estimate is calling for revenue of $12.40 billion, up 4.32% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.02 per share and revenue of $51.49 billion. These totals would mark changes of +16.15% and +4.37%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for CSCO. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% higher. CSCO is currently a Zacks Rank #3 (Hold).
Investors should also note CSCO's current valuation metrics, including its Forward P/E ratio of 15.7. For comparison, its industry has an average Forward P/E of 15.7, which means CSCO is trading at a no noticeable deviation to the group.
Also, we should mention that CSCO has a PEG ratio of 2.48. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CSCO's industry had an average PEG ratio of 2.23 as of yesterday's close.
The Computer - Networking industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 22, which puts it in the top 9% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.