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Cisco Systems (CSCO) Gains As Market Dips: What You Should Know

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In the latest trading session, Cisco Systems (CSCO - Free Report) closed at $57.44, marking a +0.77% move from the previous day. This change outpaced the S&P 500's 0.35% loss on the day.

Heading into today, shares of the seller of routers, switches, software and services had gained 3.77% over the past month, lagging the Computer and Technology sector's gain of 8.33% and the S&P 500's gain of 7.11% in that time.

CSCO will be looking to display strength as it nears its next earnings release, which is expected to be November 17, 2021. On that day, CSCO is projected to report earnings of $0.81 per share, which would represent year-over-year growth of 6.58%. Meanwhile, our latest consensus estimate is calling for revenue of $12.98 billion, up 8.79% from the prior-year quarter.

CSCO's full-year Zacks Consensus Estimates are calling for earnings of $3.43 per share and revenue of $52.8 billion. These results would represent year-over-year changes of +6.52% and +5.99%, respectively.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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 has moved 0.03% higher. CSCO is currently a Zacks Rank #2 (Buy).

Looking at its valuation, CSCO is holding a Forward P/E ratio of 16.63. This valuation marks a discount compared to its industry's average Forward P/E of 18.02.

Also, we should mention that CSCO has a PEG ratio of 2.38. 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 2.37 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 109, which puts it in the top 43% 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.

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