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Cisco Systems (CSCO) Dips More Than Broader Markets: What You Should Know

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Cisco Systems (CSCO - Free Report) closed at $49.65 in the latest trading session, marking a -0.72% move from the prior day. This change lagged the S&P 500's daily loss of 0.55%. Meanwhile, the Dow lost 0.01%, and the Nasdaq, a tech-heavy index, lost 2.01%.

Heading into today, shares of the seller of routers, switches, software and services had gained 9.89% over the past month, outpacing the Computer and Technology sector's loss of 2.41% and the S&P 500's gain of 0.84% in that time.

Investors will be hoping for strength from CSCO as it approaches its next earnings release. On that day, CSCO is projected to report earnings of $0.82 per share, which would represent year-over-year growth of 3.8%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.58 billion, up 4.94% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.22 per share and revenue of $49.19 billion, which would represent changes of +0.31% and -0.23%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for CSCO. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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. CSCO is currently a Zacks Rank #3 (Hold).

Investors should also note CSCO's current valuation metrics, including its Forward P/E ratio of 15.53. This valuation marks a discount compared to its industry's average Forward P/E of 17.11.

Meanwhile, CSCO's PEG ratio is currently 2.49. 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 3.42 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 225, putting it in the bottom 12% 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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