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Cisco Systems (CSCO) Exceeds Market Returns: Some Facts to Consider
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Cisco Systems (CSCO - Free Report) ended the recent trading session at $50.24, demonstrating a +0.66% swing from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.57%. Meanwhile, the Dow gained 0.46%, and the Nasdaq, a tech-heavy index, added 0.75%.
Shares of the seller of routers, switches, software and services have appreciated by 1.18% over the course of the past month, underperforming the Computer and Technology sector's gain of 1.51% and the S&P 500's gain of 3.4%.
Market participants will be closely following the financial results of Cisco Systems in its upcoming release. The company plans to announce its earnings on February 14, 2024. The company is forecasted to report an EPS of $0.84, showcasing a 4.55% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $12.73 billion, reflecting a 6.34% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $3.89 per share and a revenue of $54.68 billion, demonstrating changes of 0% and -4.06%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Cisco Systems. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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 0.18% lower. At present, Cisco Systems boasts a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Cisco Systems is presently being traded at a Forward P/E ratio of 12.83. This signifies a premium in comparison to the average Forward P/E of 12.18 for its industry.
Also, we should mention that CSCO has a PEG ratio of 2.07. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer - Networking was holding an average PEG ratio of 0.72 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 226, putting it in the bottom 11% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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) Exceeds Market Returns: Some Facts to Consider
Cisco Systems (CSCO - Free Report) ended the recent trading session at $50.24, demonstrating a +0.66% swing from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.57%. Meanwhile, the Dow gained 0.46%, and the Nasdaq, a tech-heavy index, added 0.75%.
Shares of the seller of routers, switches, software and services have appreciated by 1.18% over the course of the past month, underperforming the Computer and Technology sector's gain of 1.51% and the S&P 500's gain of 3.4%.
Market participants will be closely following the financial results of Cisco Systems in its upcoming release. The company plans to announce its earnings on February 14, 2024. The company is forecasted to report an EPS of $0.84, showcasing a 4.55% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $12.73 billion, reflecting a 6.34% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $3.89 per share and a revenue of $54.68 billion, demonstrating changes of 0% and -4.06%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Cisco Systems. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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 0.18% lower. At present, Cisco Systems boasts a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Cisco Systems is presently being traded at a Forward P/E ratio of 12.83. This signifies a premium in comparison to the average Forward P/E of 12.18 for its industry.
Also, we should mention that CSCO has a PEG ratio of 2.07. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer - Networking was holding an average PEG ratio of 0.72 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 226, putting it in the bottom 11% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.