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Cisco Systems (CSCO) Beats Stock Market Upswing: What Investors Need to Know

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Cisco Systems (CSCO - Free Report) closed the most recent trading day at $61.63, moving +0.98% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.61%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 1.28%.

The seller of routers, switches, software and services's stock has climbed by 1.97% in the past month, exceeding the Computer and Technology sector's gain of 1.24% and lagging the S&P 500's gain of 2.08%.

Analysts and investors alike will be keeping a close eye on the performance of Cisco Systems in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.91, signifying a 4.6% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.86 billion, up 8.36% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $3.65 per share and a revenue of $55.93 billion, demonstrating changes of -2.14% and +3.95%, respectively, from the preceding year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Cisco Systems. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 past month, there's been a 0.15% rise in the Zacks Consensus EPS estimate. Cisco Systems is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Cisco Systems is currently trading at a Forward P/E ratio of 16.73. This represents a premium compared to its industry's average Forward P/E of 16.42.

Also, we should mention that CSCO has a PEG ratio of 3.7. 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. The Computer - Networking industry had an average PEG ratio of 1.35 as trading concluded yesterday.

The Computer - Networking industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 95, this industry ranks in the top 38% 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.

To follow CSCO in the coming trading sessions, be sure to utilize Zacks.com.


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