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Cisco Systems (CSCO) Registers a Bigger Fall Than the Market: Important Facts to Note

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The most recent trading session ended with Cisco Systems (CSCO - Free Report) standing at $49.21, reflecting a -1.6% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a loss of 0.95% for the day. Elsewhere, the Dow lost 1.09%, while the tech-heavy Nasdaq lost 0.84%.

The the stock of seller of routers, switches, software and services has fallen by 0.12% in the past month, lagging the Computer and Technology sector's gain of 1.67% and the S&P 500's gain of 1.78%.

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 May 15, 2024. The company's earnings per share (EPS) are projected to be $0.85, reflecting a 15% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $12.31 billion, indicating a 15.5% decline compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.71 per share and revenue of $52.59 billion. These totals would mark changes of -4.63% and -7.74%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Cisco Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.35% fall in the Zacks Consensus EPS estimate. As of now, Cisco Systems holds a Zacks Rank of #4 (Sell).

In terms of valuation, Cisco Systems is presently being traded at a Forward P/E ratio of 13.49. This valuation marks a discount compared to its industry's average Forward P/E of 14.9.

We can additionally observe that CSCO currently boasts a PEG ratio of 1.93. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Computer - Networking industry held an average PEG ratio of 1.16.

The Computer - Networking industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 98, placing it within the top 39% of over 250 industries.

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.

Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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