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Cisco Systems (CSCO) Exceeds Market Returns: Some Facts to Consider
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In the latest close session, Cisco Systems (CSCO - Free Report) was up +2.6% at $84.50. The stock's change was more than the S&P 500's daily gain of 0.26%. Meanwhile, the Dow experienced a rise of 0.24%, and the technology-dominated Nasdaq saw an increase of 0.36%.
Prior to today's trading, shares of the seller of routers, switches, software and services had gained 6.13% lagged the Computer and Technology sector's gain of 9.34% and outpaced the S&P 500's gain of 5.98%.
Market participants will be closely following the financial results of Cisco Systems in its upcoming release. It is anticipated that the company will report an EPS of $1.04, marking a 8.33% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $15.52 billion, reflecting a 9.69% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.15 per share and revenue of $61.19 billion, which would represent changes of +8.92% and +8.01%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cisco Systems. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection has moved 0.12% higher. As of now, Cisco Systems holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Cisco Systems has a Forward P/E ratio of 19.85 right now. For comparison, its industry has an average Forward P/E of 18.66, which means Cisco Systems is trading at a premium to the group.
We can also see that CSCO currently has a PEG ratio of 2.54. 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 1.71.
The Computer - Networking industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 93, this industry ranks in the top 39% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Cisco Systems (CSCO) Exceeds Market Returns: Some Facts to Consider
In the latest close session, Cisco Systems (CSCO - Free Report) was up +2.6% at $84.50. The stock's change was more than the S&P 500's daily gain of 0.26%. Meanwhile, the Dow experienced a rise of 0.24%, and the technology-dominated Nasdaq saw an increase of 0.36%.
Prior to today's trading, shares of the seller of routers, switches, software and services had gained 6.13% lagged the Computer and Technology sector's gain of 9.34% and outpaced the S&P 500's gain of 5.98%.
Market participants will be closely following the financial results of Cisco Systems in its upcoming release. It is anticipated that the company will report an EPS of $1.04, marking a 8.33% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $15.52 billion, reflecting a 9.69% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.15 per share and revenue of $61.19 billion, which would represent changes of +8.92% and +8.01%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cisco Systems. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection has moved 0.12% higher. As of now, Cisco Systems holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Cisco Systems has a Forward P/E ratio of 19.85 right now. For comparison, its industry has an average Forward P/E of 18.66, which means Cisco Systems is trading at a premium to the group.
We can also see that CSCO currently has a PEG ratio of 2.54. 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 1.71.
The Computer - Networking industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 93, this industry ranks in the top 39% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.