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Cisco Systems (CSCO) Outperforms Broader Market: What You Need to Know
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In the latest market close, Cisco Systems (CSCO - Free Report) reached $49.88, with a +0.67% movement compared to the previous day. This move outpaced the S&P 500's daily gain of 0.32%. At the same time, the Dow added 0.68%, and the tech-heavy Nasdaq gained 0.2%.
The the stock of seller of routers, switches, software and services has risen by 2.21% in the past month, lagging the Computer and Technology sector's gain of 6.04% and the S&P 500's gain of 5.11%.
The upcoming earnings release of Cisco Systems will be of great interest to investors. The company is predicted to post an EPS of $0.85, indicating a 15% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $12.26 billion, reflecting a 15.84% fall from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.71 per share and revenue of $52.43 billion. These totals would mark changes of -4.63% and -8.01%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Cisco Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
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. The Zacks Consensus EPS estimate has moved 0.09% lower within the past month. Cisco Systems is currently sporting a Zacks Rank of #4 (Sell).
Investors should also note Cisco Systems's current valuation metrics, including its Forward P/E ratio of 13.37. Its industry sports an average Forward P/E of 14.97, so one might conclude that Cisco Systems is trading at a discount comparatively.
We can also see that CSCO currently has a PEG ratio of 1.91. 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 industry had an average PEG ratio of 1.18 as trading concluded yesterday.
The Computer - Networking industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 69, this industry ranks in the top 28% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Cisco Systems (CSCO) Outperforms Broader Market: What You Need to Know
In the latest market close, Cisco Systems (CSCO - Free Report) reached $49.88, with a +0.67% movement compared to the previous day. This move outpaced the S&P 500's daily gain of 0.32%. At the same time, the Dow added 0.68%, and the tech-heavy Nasdaq gained 0.2%.
The the stock of seller of routers, switches, software and services has risen by 2.21% in the past month, lagging the Computer and Technology sector's gain of 6.04% and the S&P 500's gain of 5.11%.
The upcoming earnings release of Cisco Systems will be of great interest to investors. The company is predicted to post an EPS of $0.85, indicating a 15% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $12.26 billion, reflecting a 15.84% fall from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.71 per share and revenue of $52.43 billion. These totals would mark changes of -4.63% and -8.01%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Cisco Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
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. The Zacks Consensus EPS estimate has moved 0.09% lower within the past month. Cisco Systems is currently sporting a Zacks Rank of #4 (Sell).
Investors should also note Cisco Systems's current valuation metrics, including its Forward P/E ratio of 13.37. Its industry sports an average Forward P/E of 14.97, so one might conclude that Cisco Systems is trading at a discount comparatively.
We can also see that CSCO currently has a PEG ratio of 1.91. 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 industry had an average PEG ratio of 1.18 as trading concluded yesterday.
The Computer - Networking industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 69, this industry ranks in the top 28% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.