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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 the most recent trading day at $44.58, moving +1.02% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.99%. At the same time, the Dow added 0.51%, and the tech-heavy Nasdaq lost 0.31%.
Prior to today's trading, shares of the seller of routers, switches, software and services had gained 1.29% over the past month. This has outpaced the Computer and Technology sector's loss of 11.18% and lagged the S&P 500's gain of 7.91% in that time.
Wall Street will be looking for positivity from Cisco Systems as it approaches its next earnings report date. This 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, our latest consensus estimate is calling for revenue of $12.75 billion, down 2.85% from the prior-year quarter.
CSCO's full-year Zacks Consensus Estimates are calling for earnings of $3.35 per share and revenue of $51.21 billion. These results would represent year-over-year changes of +4.04% and +2.79%, respectively.
Investors should also note any recent changes to analyst estimates for Cisco Systems. Recent revisions tend to reflect the latest near-term business trends. 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. 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 currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Cisco Systems currently has a Forward P/E ratio of 13.16. This valuation marks a discount compared to its industry's average Forward P/E of 14.86.
Investors should also note that CSCO has a PEG ratio of 2.02 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Networking was holding an average PEG ratio of 2.02 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 100, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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Cisco Systems (CSCO) Outpaces Stock Market Gains: What You Should Know
Cisco Systems (CSCO - Free Report) closed the most recent trading day at $44.58, moving +1.02% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.99%. At the same time, the Dow added 0.51%, and the tech-heavy Nasdaq lost 0.31%.
Prior to today's trading, shares of the seller of routers, switches, software and services had gained 1.29% over the past month. This has outpaced the Computer and Technology sector's loss of 11.18% and lagged the S&P 500's gain of 7.91% in that time.
Wall Street will be looking for positivity from Cisco Systems as it approaches its next earnings report date. This 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, our latest consensus estimate is calling for revenue of $12.75 billion, down 2.85% from the prior-year quarter.
CSCO's full-year Zacks Consensus Estimates are calling for earnings of $3.35 per share and revenue of $51.21 billion. These results would represent year-over-year changes of +4.04% and +2.79%, respectively.
Investors should also note any recent changes to analyst estimates for Cisco Systems. Recent revisions tend to reflect the latest near-term business trends. 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. 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 currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Cisco Systems currently has a Forward P/E ratio of 13.16. This valuation marks a discount compared to its industry's average Forward P/E of 14.86.
Investors should also note that CSCO has a PEG ratio of 2.02 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Networking was holding an average PEG ratio of 2.02 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 100, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.