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Cisco Systems (CSCO) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Cisco Systems (CSCO - Free Report) closed at $48.74, marking a -1.26% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.11%. On the other hand, the Dow registered a loss of 0.11%, and the technology-centric Nasdaq increased by 0.23%.
The seller of routers, switches, software and services's stock has climbed by 0.84% in the past month, falling short of the Computer and Technology sector's gain of 1.54% and the S&P 500's gain of 1.5%.
The investment community will be paying close attention to the earnings performance of Cisco Systems in its upcoming release. On that day, Cisco Systems is projected to report earnings of $0.85 per share, which would represent a year-over-year decline of 15%. At the same time, our most recent consensus estimate is projecting a revenue of $12.31 billion, reflecting a 15.5% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $3.71 per share and a revenue of $52.43 billion, demonstrating changes of -4.63% and -8.01%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cisco Systems. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.09% decrease. Cisco Systems presently features a Zacks Rank of #4 (Sell).
With respect to valuation, Cisco Systems is currently being traded at a Forward P/E ratio of 13.32. This signifies a discount in comparison to the average Forward P/E of 15.5 for its industry.
One should further note that CSCO currently holds a PEG ratio of 1.9. 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. As of the close of trade yesterday, the Computer - Networking industry held an average PEG ratio of 1.13.
The Computer - Networking industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 96, putting it in the top 39% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Cisco Systems (CSCO) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Cisco Systems (CSCO - Free Report) closed at $48.74, marking a -1.26% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.11%. On the other hand, the Dow registered a loss of 0.11%, and the technology-centric Nasdaq increased by 0.23%.
The seller of routers, switches, software and services's stock has climbed by 0.84% in the past month, falling short of the Computer and Technology sector's gain of 1.54% and the S&P 500's gain of 1.5%.
The investment community will be paying close attention to the earnings performance of Cisco Systems in its upcoming release. On that day, Cisco Systems is projected to report earnings of $0.85 per share, which would represent a year-over-year decline of 15%. At the same time, our most recent consensus estimate is projecting a revenue of $12.31 billion, reflecting a 15.5% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $3.71 per share and a revenue of $52.43 billion, demonstrating changes of -4.63% and -8.01%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cisco Systems. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.09% decrease. Cisco Systems presently features a Zacks Rank of #4 (Sell).
With respect to valuation, Cisco Systems is currently being traded at a Forward P/E ratio of 13.32. This signifies a discount in comparison to the average Forward P/E of 15.5 for its industry.
One should further note that CSCO currently holds a PEG ratio of 1.9. 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. As of the close of trade yesterday, the Computer - Networking industry held an average PEG ratio of 1.13.
The Computer - Networking industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 96, putting it in the top 39% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.