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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 $54.54, marking a +1.22% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.2%.

Prior to today's trading, shares of the seller of routers, switches, software and services had gained 2.12% over the past month. This has outpaced the Computer and Technology sector's gain of 1.57% and lagged the S&P 500's gain of 3.28% in that time.

CSCO will be looking to display strength as it nears its next earnings release, which is expected to be August 18, 2021. In that report, analysts expect CSCO to post earnings of $0.83 per share. This would mark year-over-year growth of 3.75%. Meanwhile, our latest consensus estimate is calling for revenue of $13.04 billion, up 7.28% from the prior-year quarter.

CSCO's full-year Zacks Consensus Estimates are calling for earnings of $3.20 per share and revenue of $49.68 billion. These results would represent year-over-year changes of -0.31% and +0.76%, respectively.

It is also important to note the 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.

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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. CSCO is currently a Zacks Rank #4 (Sell).

In terms of valuation, CSCO is currently trading at a Forward P/E ratio of 16.81. This represents a premium compared to its industry's average Forward P/E of 15.5.

Meanwhile, CSCO's PEG ratio is currently 2.69. 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 3.33 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 208, which puts it in the bottom 19% 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.

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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