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Cisco Systems (CSCO) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Cisco Systems (CSCO - Free Report) closed at $42.93, marking a -1.47% move from the previous day. This change lagged the S&P 500's 0.95% gain on the day. Elsewhere, the Dow gained 0.64%, while the tech-heavy Nasdaq added 0.23%.
Coming into today, shares of the seller of routers, switches, software and services had lost 0.98% in the past month. In that same time, the Computer and Technology sector lost 2.82%, while the S&P 500 lost 3.49%.
Wall Street will be looking for positivity from Cisco Systems as it approaches its next earnings report date. The company is expected to report EPS of $0.82, down 2.38% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.77 billion, down 2.75% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.35 per share and revenue of $51.22 billion, which would represent changes of +4.04% and +2.81%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Cisco Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Cisco Systems is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Cisco Systems is holding a Forward P/E ratio of 13. For comparison, its industry has an average Forward P/E of 17.03, which means Cisco Systems is trading at a discount to the group.
Investors should also note that CSCO has a PEG ratio of 2 right now. 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. The Computer - Networking was holding an average PEG ratio of 2 at yesterday's closing price.
The Computer - Networking industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 237, putting it in the bottom 7% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Cisco Systems (CSCO) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Cisco Systems (CSCO - Free Report) closed at $42.93, marking a -1.47% move from the previous day. This change lagged the S&P 500's 0.95% gain on the day. Elsewhere, the Dow gained 0.64%, while the tech-heavy Nasdaq added 0.23%.
Coming into today, shares of the seller of routers, switches, software and services had lost 0.98% in the past month. In that same time, the Computer and Technology sector lost 2.82%, while the S&P 500 lost 3.49%.
Wall Street will be looking for positivity from Cisco Systems as it approaches its next earnings report date. The company is expected to report EPS of $0.82, down 2.38% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.77 billion, down 2.75% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.35 per share and revenue of $51.22 billion, which would represent changes of +4.04% and +2.81%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Cisco Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Cisco Systems is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Cisco Systems is holding a Forward P/E ratio of 13. For comparison, its industry has an average Forward P/E of 17.03, which means Cisco Systems is trading at a discount to the group.
Investors should also note that CSCO has a PEG ratio of 2 right now. 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. The Computer - Networking was holding an average PEG ratio of 2 at yesterday's closing price.
The Computer - Networking industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 237, putting it in the bottom 7% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.