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Cisco Systems (CSCO) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Cisco Systems (CSCO - Free Report) closed at $56.48, marking a +1.2% move from the previous day. This move outpaced the S&P 500's daily gain of 0.77%. Meanwhile, the Dow gained 0.67%, and the Nasdaq, a tech-heavy index, added 0.75%.
Heading into today, shares of the seller of routers, switches, software and services had gained 4.85% over the past month, lagging the Computer and Technology sector's gain of 8.17% and the S&P 500's gain of 8.19% in that time.
Wall Street will be looking for positivity from CSCO as it approaches its next earnings report date. On that day, CSCO is projected to report earnings of $0.82 per share, which would represent year-over-year growth of 17.14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.39 billion, up 4.23% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.08 per share and revenue of $51.86 billion, which would represent changes of +18.46% and +5.12%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for CSCO. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. CSCO is currently a Zacks Rank #2 (Buy).
In terms of valuation, CSCO is currently trading at a Forward P/E ratio of 18.14. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 18.14.
Investors should also note that CSCO has a PEG ratio of 2.59 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. Computer - Networking stocks are, on average, holding a PEG ratio of 2.59 based on yesterday's closing prices.
The Computer - Networking industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 103, putting it in the top 41% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Cisco Systems (CSCO - Free Report) closed at $56.48, marking a +1.2% move from the previous day. This move outpaced the S&P 500's daily gain of 0.77%. Meanwhile, the Dow gained 0.67%, and the Nasdaq, a tech-heavy index, added 0.75%.
Heading into today, shares of the seller of routers, switches, software and services had gained 4.85% over the past month, lagging the Computer and Technology sector's gain of 8.17% and the S&P 500's gain of 8.19% in that time.
Wall Street will be looking for positivity from CSCO as it approaches its next earnings report date. On that day, CSCO is projected to report earnings of $0.82 per share, which would represent year-over-year growth of 17.14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.39 billion, up 4.23% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.08 per share and revenue of $51.86 billion, which would represent changes of +18.46% and +5.12%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for CSCO. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. CSCO is currently a Zacks Rank #2 (Buy).
In terms of valuation, CSCO is currently trading at a Forward P/E ratio of 18.14. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 18.14.
Investors should also note that CSCO has a PEG ratio of 2.59 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. Computer - Networking stocks are, on average, holding a PEG ratio of 2.59 based on yesterday's closing prices.
The Computer - Networking industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 103, putting it in the top 41% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.