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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 $41.52, marking a -1.12% move from the previous day. This change lagged the S&P 500's 1.03% loss on the day. Meanwhile, the Dow lost 1.15%, and the Nasdaq, a tech-heavy index, added 0.39%.
Prior to today's trading, shares of the seller of routers, switches, software and services had lost 6.73% over the past month. This has lagged the Computer and Technology sector's loss of 4.49% and the S&P 500's loss of 3.51% in that time.
Investors will be hoping for strength from Cisco Systems as it approaches its next earnings release. On that day, Cisco Systems is projected to report earnings of $0.84 per share, which would represent year-over-year growth of 2.44%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.31 billion, up 3.2% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.53 per share and revenue of $54.07 billion. These totals would mark changes of +5.06% and +4.87%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Cisco Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Cisco Systems currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Cisco Systems is holding a Forward P/E ratio of 11.89. Its industry sports an average Forward P/E of 15.63, so we one might conclude that Cisco Systems is trading at a discount comparatively.
It is also worth noting that CSCO currently has a PEG ratio of 1.83. 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 1.83 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 29, putting it in the top 12% 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) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Cisco Systems (CSCO - Free Report) closed at $41.52, marking a -1.12% move from the previous day. This change lagged the S&P 500's 1.03% loss on the day. Meanwhile, the Dow lost 1.15%, and the Nasdaq, a tech-heavy index, added 0.39%.
Prior to today's trading, shares of the seller of routers, switches, software and services had lost 6.73% over the past month. This has lagged the Computer and Technology sector's loss of 4.49% and the S&P 500's loss of 3.51% in that time.
Investors will be hoping for strength from Cisco Systems as it approaches its next earnings release. On that day, Cisco Systems is projected to report earnings of $0.84 per share, which would represent year-over-year growth of 2.44%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.31 billion, up 3.2% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.53 per share and revenue of $54.07 billion. These totals would mark changes of +5.06% and +4.87%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Cisco Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Cisco Systems currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Cisco Systems is holding a Forward P/E ratio of 11.89. Its industry sports an average Forward P/E of 15.63, so we one might conclude that Cisco Systems is trading at a discount comparatively.
It is also worth noting that CSCO currently has a PEG ratio of 1.83. 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 1.83 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 29, putting it in the top 12% 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.