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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 at $46.56 in the latest trading session, marking a +0.04% move from the prior day. This move lagged the S&P 500's daily gain of 1.96%. Meanwhile, the Dow gained 1.57%, and the Nasdaq, a tech-heavy index, lost 3.03%.
Coming into today, shares of the seller of routers, switches, software and services had lost 9.05% in the past month. In that same time, the Computer and Technology sector lost 0.91%, while the S&P 500 gained 2.19%.
Cisco Systems will be looking to display strength as it nears its next earnings release, which is expected to be May 17, 2023. On that day, Cisco Systems is projected to report earnings of $0.98 per share, which would represent year-over-year growth of 12.64%. Meanwhile, our latest consensus estimate is calling for revenue of $14.39 billion, up 12.1% from the prior-year quarter.
CSCO's full-year Zacks Consensus Estimates are calling for earnings of $3.76 per share and revenue of $56.56 billion. These results would represent year-over-year changes of +11.9% and +9.69%, respectively.
Investors might also notice 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.
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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.07% higher. Cisco Systems is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, Cisco Systems is holding a Forward P/E ratio of 12.38. This represents a discount compared to its industry's average Forward P/E of 16.79.
We can also see that CSCO currently has a PEG ratio of 1.9. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computer - Networking was holding an average PEG ratio of 1.9 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 62, putting it in the top 25% 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.
Be sure to follow all of these stock-moving metrics, and many 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 at $46.56 in the latest trading session, marking a +0.04% move from the prior day. This move lagged the S&P 500's daily gain of 1.96%. Meanwhile, the Dow gained 1.57%, and the Nasdaq, a tech-heavy index, lost 3.03%.
Coming into today, shares of the seller of routers, switches, software and services had lost 9.05% in the past month. In that same time, the Computer and Technology sector lost 0.91%, while the S&P 500 gained 2.19%.
Cisco Systems will be looking to display strength as it nears its next earnings release, which is expected to be May 17, 2023. On that day, Cisco Systems is projected to report earnings of $0.98 per share, which would represent year-over-year growth of 12.64%. Meanwhile, our latest consensus estimate is calling for revenue of $14.39 billion, up 12.1% from the prior-year quarter.
CSCO's full-year Zacks Consensus Estimates are calling for earnings of $3.76 per share and revenue of $56.56 billion. These results would represent year-over-year changes of +11.9% and +9.69%, respectively.
Investors might also notice 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.
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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.07% higher. Cisco Systems is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, Cisco Systems is holding a Forward P/E ratio of 12.38. This represents a discount compared to its industry's average Forward P/E of 16.79.
We can also see that CSCO currently has a PEG ratio of 1.9. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computer - Networking was holding an average PEG ratio of 1.9 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 62, putting it in the top 25% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.