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Cisco Systems (CSCO) Outpaces Stock Market Gains: What You Should Know
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Cisco Systems (CSCO - Free Report) closed at $42.69 in the latest trading session, marking a +1.74% move from the prior day. This move outpaced the S&P 500's daily gain of 0.36%. Elsewhere, the Dow gained 0.23%, while the tech-heavy Nasdaq lost 0.1%.
Heading into today, shares of the seller of routers, switches, software and services had lost 7.92% over the past month, lagging the Computer and Technology sector's loss of 6.98% and the S&P 500's loss of 6.59% in that time.
Wall Street will be looking for positivity from Cisco Systems as it approaches its next earnings report date. On that day, Cisco Systems is projected to report earnings of $0.82 per share, which would represent a year-over-year decline of 2.38%. Our most recent consensus estimate is calling for quarterly revenue of $12.77 billion, down 2.75% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.35 per share and revenue of $51.22 billion. These totals would mark changes of +4.04% and +2.81%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Cisco Systems. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 has moved 0.06% higher within the past month. Cisco Systems is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Cisco Systems has a Forward P/E ratio of 12.51 right now. This valuation marks a discount compared to its industry's average Forward P/E of 15.3.
Meanwhile, CSCO's PEG ratio is currently 1.92. 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. The Computer - Networking industry currently had an average PEG ratio of 1.92 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 155, which puts it in the bottom 39% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
View the Zacks #1 Rank List
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Cisco Systems (CSCO) Outpaces Stock Market Gains: What You Should Know
Cisco Systems (CSCO - Free Report) closed at $42.69 in the latest trading session, marking a +1.74% move from the prior day. This move outpaced the S&P 500's daily gain of 0.36%. Elsewhere, the Dow gained 0.23%, while the tech-heavy Nasdaq lost 0.1%.
Heading into today, shares of the seller of routers, switches, software and services had lost 7.92% over the past month, lagging the Computer and Technology sector's loss of 6.98% and the S&P 500's loss of 6.59% in that time.
Wall Street will be looking for positivity from Cisco Systems as it approaches its next earnings report date. On that day, Cisco Systems is projected to report earnings of $0.82 per share, which would represent a year-over-year decline of 2.38%. Our most recent consensus estimate is calling for quarterly revenue of $12.77 billion, down 2.75% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.35 per share and revenue of $51.22 billion. These totals would mark changes of +4.04% and +2.81%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Cisco Systems. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 has moved 0.06% higher within the past month. Cisco Systems is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Cisco Systems has a Forward P/E ratio of 12.51 right now. This valuation marks a discount compared to its industry's average Forward P/E of 15.3.
Meanwhile, CSCO's PEG ratio is currently 1.92. 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. The Computer - Networking industry currently had an average PEG ratio of 1.92 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 155, which puts it in the bottom 39% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.