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Cisco Systems (CSCO) Gains But Lags Market: What You Should Know
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Cisco Systems (CSCO - Free Report) closed the most recent trading day at $46.78, moving +0.69% from the previous trading session. This change lagged the S&P 500's 1.89% gain on the day. Elsewhere, the Dow gained 1%, while the tech-heavy Nasdaq added 10%.
Prior to today's trading, shares of the seller of routers, switches, software and services had lost 1.82% over the past month. This has lagged the Computer and Technology sector's gain of 4.01% and the S&P 500's gain of 2.3% in that time.
Cisco Systems will be looking to display strength as it nears its next earnings release, which is expected to be February 15, 2023. In that report, analysts expect Cisco Systems to post earnings of $0.86 per share. This would mark year-over-year growth of 2.38%. Meanwhile, our latest consensus estimate is calling for revenue of $13.42 billion, up 5.5% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.54 per share and revenue of $54.44 billion, which would represent changes of +5.36% and +5.59%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Cisco Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. The Zacks Consensus EPS estimate has moved 0.05% lower within the past month. 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 13.12. Its industry sports an average Forward P/E of 18.44, 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 2.02. 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 78, putting it in the top 31% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Cisco Systems (CSCO) Gains But Lags Market: What You Should Know
Cisco Systems (CSCO - Free Report) closed the most recent trading day at $46.78, moving +0.69% from the previous trading session. This change lagged the S&P 500's 1.89% gain on the day. Elsewhere, the Dow gained 1%, while the tech-heavy Nasdaq added 10%.
Prior to today's trading, shares of the seller of routers, switches, software and services had lost 1.82% over the past month. This has lagged the Computer and Technology sector's gain of 4.01% and the S&P 500's gain of 2.3% in that time.
Cisco Systems will be looking to display strength as it nears its next earnings release, which is expected to be February 15, 2023. In that report, analysts expect Cisco Systems to post earnings of $0.86 per share. This would mark year-over-year growth of 2.38%. Meanwhile, our latest consensus estimate is calling for revenue of $13.42 billion, up 5.5% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.54 per share and revenue of $54.44 billion, which would represent changes of +5.36% and +5.59%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Cisco Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. The Zacks Consensus EPS estimate has moved 0.05% lower within the past month. 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 13.12. Its industry sports an average Forward P/E of 18.44, 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 2.02. 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 78, putting it in the top 31% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.