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Cisco Systems (CSCO) Registers a Bigger Fall Than the Market: Important Facts to Note
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In the latest close session, Cisco Systems (CSCO - Free Report) was down 1.35% at $88.59. The stock fell short of the S&P 500, which registered a loss of 0.41% for the day. On the other hand, the Dow registered a loss of 0.36%, and the technology-centric Nasdaq decreased by 0.89%.
The seller of routers, switches, software and services's shares have seen an increase of 9.74% over the last month, not keeping up with the Computer and Technology sector's gain of 14.93% and outstripping the S&P 500's gain of 9.71%.
Market participants will be closely following the financial results of Cisco Systems in its upcoming release. On that day, Cisco Systems is projected to report earnings of $1.04 per share, which would represent year-over-year growth of 8.33%. Meanwhile, our latest consensus estimate is calling for revenue of $15.58 billion, up 10.08% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $4.16 per share and a revenue of $61.26 billion, demonstrating changes of +9.19% and +8.12%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates 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 business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.29% higher. Currently, Cisco Systems is carrying a Zacks Rank of #2 (Buy).
From a valuation perspective, Cisco Systems is currently exchanging hands at a Forward P/E ratio of 21.61. This represents a premium compared to its industry average Forward P/E of 19.66.
One should further note that CSCO currently holds a PEG ratio of 2.77. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Computer - Networking industry held an average PEG ratio of 1.83.
The Computer - Networking industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 73, which puts it in the top 30% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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Cisco Systems (CSCO) Registers a Bigger Fall Than the Market: Important Facts to Note
In the latest close session, Cisco Systems (CSCO - Free Report) was down 1.35% at $88.59. The stock fell short of the S&P 500, which registered a loss of 0.41% for the day. On the other hand, the Dow registered a loss of 0.36%, and the technology-centric Nasdaq decreased by 0.89%.
The seller of routers, switches, software and services's shares have seen an increase of 9.74% over the last month, not keeping up with the Computer and Technology sector's gain of 14.93% and outstripping the S&P 500's gain of 9.71%.
Market participants will be closely following the financial results of Cisco Systems in its upcoming release. On that day, Cisco Systems is projected to report earnings of $1.04 per share, which would represent year-over-year growth of 8.33%. Meanwhile, our latest consensus estimate is calling for revenue of $15.58 billion, up 10.08% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $4.16 per share and a revenue of $61.26 billion, demonstrating changes of +9.19% and +8.12%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates 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 business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.29% higher. Currently, Cisco Systems is carrying a Zacks Rank of #2 (Buy).
From a valuation perspective, Cisco Systems is currently exchanging hands at a Forward P/E ratio of 21.61. This represents a premium compared to its industry average Forward P/E of 19.66.
One should further note that CSCO currently holds a PEG ratio of 2.77. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Computer - Networking industry held an average PEG ratio of 1.83.
The Computer - Networking industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 73, which puts it in the top 30% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.