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Cisco Systems (CSCO) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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In the latest close session, Cisco Systems (CSCO - Free Report) was down 2.13% at $114.89. This change lagged the S&P 500's daily loss of 0.47%. On the other hand, the Dow registered a gain of 0.1%, and the technology-centric Nasdaq decreased by 1.25%.
Shares of the seller of routers, switches, software and services have appreciated by 7.27% over the course of the past month, outperforming the Computer and Technology sector's gain of 6.08%, and the S&P 500's gain of 1.15%.
Market participants will be closely following the financial results of Cisco Systems in its upcoming release. The company is expected to report EPS of $1.32, up 32% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $18.09 billion, indicating a 21.52% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.11 per share and a revenue of $73.03 billion, representing changes of +18.01% and +15.32%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Cisco Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Cisco Systems boasts a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Cisco Systems is holding a Forward P/E ratio of 22.97. This signifies a discount in comparison to the average Forward P/E of 23.35 for its industry.
It's also important to note that CSCO currently trades at a PEG ratio of 2.12. 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 average PEG ratio for the Computer - Networking industry stood at 1.53 at the close of the market yesterday.
The Computer - Networking industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 107, this industry ranks in the top 44% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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Cisco Systems (CSCO) Sees a More Significant Dip Than Broader Market: Some Facts to Know
In the latest close session, Cisco Systems (CSCO - Free Report) was down 2.13% at $114.89. This change lagged the S&P 500's daily loss of 0.47%. On the other hand, the Dow registered a gain of 0.1%, and the technology-centric Nasdaq decreased by 1.25%.
Shares of the seller of routers, switches, software and services have appreciated by 7.27% over the course of the past month, outperforming the Computer and Technology sector's gain of 6.08%, and the S&P 500's gain of 1.15%.
Market participants will be closely following the financial results of Cisco Systems in its upcoming release. The company is expected to report EPS of $1.32, up 32% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $18.09 billion, indicating a 21.52% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.11 per share and a revenue of $73.03 billion, representing changes of +18.01% and +15.32%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Cisco Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Cisco Systems boasts a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Cisco Systems is holding a Forward P/E ratio of 22.97. This signifies a discount in comparison to the average Forward P/E of 23.35 for its industry.
It's also important to note that CSCO currently trades at a PEG ratio of 2.12. 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 average PEG ratio for the Computer - Networking industry stood at 1.53 at the close of the market yesterday.
The Computer - Networking industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 107, this industry ranks in the top 44% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.