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Cisco Systems (CSCO) Dips More Than Broader Markets: What You Should Know

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Cisco Systems (CSCO - Free Report) closed at $42.33 in the latest trading session, marking a -0.87% move from the prior day. This change lagged the S&P 500's daily loss of 0.3%. Elsewhere, the Dow lost 0.46%, while the tech-heavy Nasdaq lost 0.34%.

Coming into today, shares of the seller of routers, switches, software and services had lost 2.51% in the past month. In that same time, the Computer and Technology sector gained 2.76%, while the S&P 500 gained 1.51%.

Cisco Systems will be looking to display strength as it nears its next earnings release, which is expected to be August 17, 2022. 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 should also note any recent changes to analyst estimates for Cisco Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% higher. Cisco Systems is holding a Zacks Rank of #5 (Strong Sell) right now.

Investors should also note Cisco Systems's current valuation metrics, including its Forward P/E ratio of 12.73. For comparison, its industry has an average Forward P/E of 14.22, which means Cisco Systems is trading at a discount to the group.

Also, we should mention that CSCO has a PEG ratio of 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 industry currently had an average PEG ratio of 1.96 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 177, which puts it in the bottom 30% 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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