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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 $53.74 in the latest trading session, marking a +0.9% move from the prior day. This move lagged the S&P 500's daily gain of 1.13%.
Coming into today, shares of the seller of routers, switches, software and services had lost 3.22% in the past month. In that same time, the Computer and Technology sector gained 4.4%, while the S&P 500 gained 2.39%.
CSCO will be looking to display strength as it nears its next earnings release, which is expected to be August 18, 2021. The company is expected to report EPS of $0.82, up 2.5% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.04 billion, up 7.25% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.20 per share and revenue of $49.67 billion. These totals would mark changes of -0.31% and +0.75%, respectively, from last 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. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. CSCO currently has a Zacks Rank of #4 (Sell).
Investors should also note CSCO's current valuation metrics, including its Forward P/E ratio of 16.63. Its industry sports an average Forward P/E of 15.5, so we one might conclude that CSCO is trading at a premium comparatively.
Also, we should mention that CSCO has a PEG ratio of 2.66. 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 3.28 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 229, putting it in the bottom 10% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Cisco Systems (CSCO) Gains But Lags Market: What You Should Know
Cisco Systems (CSCO - Free Report) closed at $53.74 in the latest trading session, marking a +0.9% move from the prior day. This move lagged the S&P 500's daily gain of 1.13%.
Coming into today, shares of the seller of routers, switches, software and services had lost 3.22% in the past month. In that same time, the Computer and Technology sector gained 4.4%, while the S&P 500 gained 2.39%.
CSCO will be looking to display strength as it nears its next earnings release, which is expected to be August 18, 2021. The company is expected to report EPS of $0.82, up 2.5% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.04 billion, up 7.25% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.20 per share and revenue of $49.67 billion. These totals would mark changes of -0.31% and +0.75%, respectively, from last 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. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. CSCO currently has a Zacks Rank of #4 (Sell).
Investors should also note CSCO's current valuation metrics, including its Forward P/E ratio of 16.63. Its industry sports an average Forward P/E of 15.5, so we one might conclude that CSCO is trading at a premium comparatively.
Also, we should mention that CSCO has a PEG ratio of 2.66. 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 3.28 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 229, putting it in the bottom 10% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.