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Cisco Systems (CSCO) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Cisco Systems (CSCO - Free Report) closed at $44.92, marking a -0.8% move from the previous day. This change lagged the S&P 500's 0.67% loss on the day. At the same time, the Dow lost 1.23%, and the tech-heavy Nasdaq lost 0.05%.
Heading into today, shares of the seller of routers, switches, software and services had gained 6.29% over the past month, lagging the Computer and Technology sector's gain of 9.67% and the S&P 500's gain of 7.79% in that time.
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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.75 billion, down 2.85% from the year-ago period.
Any recent changes to analyst estimates for Cisco Systems should also be noted by investors. 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.
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, 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. Within the past 30 days, our consensus EPS projection has moved 0.89% lower. Cisco Systems is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Cisco Systems's current valuation metrics, including its Forward P/E ratio of 12.83. For comparison, its industry has an average Forward P/E of 16.47, which means Cisco Systems is trading at a discount to the group.
Meanwhile, CSCO's PEG ratio is currently 1.97. 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. Computer - Networking stocks are, on average, holding a PEG ratio of 1.97 based on yesterday's closing prices.
The Computer - Networking industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 44, which puts it in the top 18% 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.
To follow CSCO in the coming trading sessions, be sure to utilize Zacks.com.
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Cisco Systems (CSCO) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Cisco Systems (CSCO - Free Report) closed at $44.92, marking a -0.8% move from the previous day. This change lagged the S&P 500's 0.67% loss on the day. At the same time, the Dow lost 1.23%, and the tech-heavy Nasdaq lost 0.05%.
Heading into today, shares of the seller of routers, switches, software and services had gained 6.29% over the past month, lagging the Computer and Technology sector's gain of 9.67% and the S&P 500's gain of 7.79% in that time.
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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.75 billion, down 2.85% from the year-ago period.
Any recent changes to analyst estimates for Cisco Systems should also be noted by investors. 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.
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, 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. Within the past 30 days, our consensus EPS projection has moved 0.89% lower. Cisco Systems is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Cisco Systems's current valuation metrics, including its Forward P/E ratio of 12.83. For comparison, its industry has an average Forward P/E of 16.47, which means Cisco Systems is trading at a discount to the group.
Meanwhile, CSCO's PEG ratio is currently 1.97. 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. Computer - Networking stocks are, on average, holding a PEG ratio of 1.97 based on yesterday's closing prices.
The Computer - Networking industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 44, which puts it in the top 18% 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.
To follow CSCO in the coming trading sessions, be sure to utilize Zacks.com.