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Cisco Systems (CSCO) Falls More Steeply Than Broader Market: What Investors Need to Know
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Cisco Systems (CSCO - Free Report) closed at $52.24 in the latest trading session, marking a -0.1% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.06%. Elsewhere, the Dow gained 0.35%, while the tech-heavy Nasdaq lost 0.76%.
Prior to today's trading, shares of the seller of routers, switches, software and services had gained 3.5% over the past month. This has lagged the Computer and Technology sector's gain of 6.36% and outpaced the S&P 500's gain of 3.36% in that time.
The investment community will be paying close attention to the earnings performance of Cisco Systems in its upcoming release. The company is slated to reveal 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. In the meantime, our current consensus estimate forecasts the revenue to be $12.72 billion, indicating a 6.38% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.89 per share and revenue of $54.39 billion, which would represent changes of 0% and -4.58%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 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. Over the past month, there's been a 0.45% fall in the Zacks Consensus EPS estimate. Cisco Systems currently has a Zacks Rank of #4 (Sell).
In the context of valuation, Cisco Systems is at present trading with a Forward P/E ratio of 13.45. This indicates a premium in contrast to its industry's Forward P/E of 13.12.
Investors should also note that CSCO has a PEG ratio of 2.17 right now. 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 industry had an average PEG ratio of 0.75 as trading concluded yesterday.
The Computer - Networking industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 173, putting it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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) Falls More Steeply Than Broader Market: What Investors Need to Know
Cisco Systems (CSCO - Free Report) closed at $52.24 in the latest trading session, marking a -0.1% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.06%. Elsewhere, the Dow gained 0.35%, while the tech-heavy Nasdaq lost 0.76%.
Prior to today's trading, shares of the seller of routers, switches, software and services had gained 3.5% over the past month. This has lagged the Computer and Technology sector's gain of 6.36% and outpaced the S&P 500's gain of 3.36% in that time.
The investment community will be paying close attention to the earnings performance of Cisco Systems in its upcoming release. The company is slated to reveal 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. In the meantime, our current consensus estimate forecasts the revenue to be $12.72 billion, indicating a 6.38% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.89 per share and revenue of $54.39 billion, which would represent changes of 0% and -4.58%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 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. Over the past month, there's been a 0.45% fall in the Zacks Consensus EPS estimate. Cisco Systems currently has a Zacks Rank of #4 (Sell).
In the context of valuation, Cisco Systems is at present trading with a Forward P/E ratio of 13.45. This indicates a premium in contrast to its industry's Forward P/E of 13.12.
Investors should also note that CSCO has a PEG ratio of 2.17 right now. 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 industry had an average PEG ratio of 0.75 as trading concluded yesterday.
The Computer - Networking industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 173, putting it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.