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Cisco Systems (CSCO) Gains But Lags Market: What You Should Know
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In the latest trading session, Cisco Systems (CSCO - Free Report) closed at $43.22, marking a +1.24% move from the previous day. The stock lagged the S&P 500's daily gain of 1.5%. Elsewhere, the Dow gained 1.12%, while the tech-heavy Nasdaq added 0.16%.
Coming into today, shares of the seller of routers, switches, software and services had lost 4.96% in the past month. In that same time, the Computer and Technology sector lost 7.02%, while the S&P 500 lost 6.54%.
Cisco Systems will be looking to display strength as it nears its next earnings release, which is expected to be August 17, 2022. In that report, analysts expect Cisco Systems to post earnings of $0.82 per share. This would mark a year-over-year decline of 2.38%. 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. Recent revisions tend to reflect the latest 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 has moved 0.06% higher within the past month. Cisco Systems is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Cisco Systems currently has a Forward P/E ratio of 12.73. For comparison, its industry has an average Forward P/E of 15.73, which means Cisco Systems is trading at a discount to the group.
Meanwhile, CSCO's PEG ratio is currently 1.96. 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 1.96 at yesterday's closing price.
The Computer - Networking industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 153, which puts it in the bottom 40% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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Cisco Systems (CSCO) Gains But Lags Market: What You Should Know
In the latest trading session, Cisco Systems (CSCO - Free Report) closed at $43.22, marking a +1.24% move from the previous day. The stock lagged the S&P 500's daily gain of 1.5%. Elsewhere, the Dow gained 1.12%, while the tech-heavy Nasdaq added 0.16%.
Coming into today, shares of the seller of routers, switches, software and services had lost 4.96% in the past month. In that same time, the Computer and Technology sector lost 7.02%, while the S&P 500 lost 6.54%.
Cisco Systems will be looking to display strength as it nears its next earnings release, which is expected to be August 17, 2022. In that report, analysts expect Cisco Systems to post earnings of $0.82 per share. This would mark a year-over-year decline of 2.38%. 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. Recent revisions tend to reflect the latest 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 has moved 0.06% higher within the past month. Cisco Systems is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Cisco Systems currently has a Forward P/E ratio of 12.73. For comparison, its industry has an average Forward P/E of 15.73, which means Cisco Systems is trading at a discount to the group.
Meanwhile, CSCO's PEG ratio is currently 1.96. 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 1.96 at yesterday's closing price.
The Computer - Networking industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 153, which puts it in the bottom 40% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.