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Here's Why Cisco Systems (CSCO) Fell More Than Broader Market
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Cisco Systems (CSCO - Free Report) closed the most recent trading day at $77.04, moving -3.6% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.4%. On the other hand, the Dow registered a gain of 0.11%, and the technology-centric Nasdaq decreased by 0.73%.
Shares of the seller of routers, switches, software and services witnessed a gain of 0.58% over the previous month, beating the performance of the Computer and Technology sector with its loss of 8.37%, and the S&P 500's loss of 7.34%.
Analysts and investors alike will be keeping a close eye on the performance of Cisco Systems in its upcoming earnings disclosure. The company is expected to report EPS of $1.03, up 7.29% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.52 billion, up 9.69% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.14 per share and revenue of $61.33 billion, indicating changes of +8.66% and +8.25%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Cisco Systems. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Cisco Systems presently features a Zacks Rank of #2 (Buy).
In terms of valuation, Cisco Systems is presently being traded at a Forward P/E ratio of 19.3. This signifies a premium in comparison to the average Forward P/E of 17.36 for its industry.
Also, we should mention that CSCO has a PEG ratio of 2.47. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Computer - Networking industry had an average PEG ratio of 1.62.
The Computer - Networking industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 99, putting it in the top 41% of all 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Here's Why Cisco Systems (CSCO) Fell More Than Broader Market
Cisco Systems (CSCO - Free Report) closed the most recent trading day at $77.04, moving -3.6% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.4%. On the other hand, the Dow registered a gain of 0.11%, and the technology-centric Nasdaq decreased by 0.73%.
Shares of the seller of routers, switches, software and services witnessed a gain of 0.58% over the previous month, beating the performance of the Computer and Technology sector with its loss of 8.37%, and the S&P 500's loss of 7.34%.
Analysts and investors alike will be keeping a close eye on the performance of Cisco Systems in its upcoming earnings disclosure. The company is expected to report EPS of $1.03, up 7.29% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.52 billion, up 9.69% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.14 per share and revenue of $61.33 billion, indicating changes of +8.66% and +8.25%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Cisco Systems. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Cisco Systems presently features a Zacks Rank of #2 (Buy).
In terms of valuation, Cisco Systems is presently being traded at a Forward P/E ratio of 19.3. This signifies a premium in comparison to the average Forward P/E of 17.36 for its industry.
Also, we should mention that CSCO has a PEG ratio of 2.47. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Computer - Networking industry had an average PEG ratio of 1.62.
The Computer - Networking industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 99, putting it in the top 41% of all 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.