Cisco Systems (CSCO - Free Report) closed at $47.03 in the latest trading session, marking a -0.09% move from the prior day. This move lagged the S&P 500's daily gain of 0.37%. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq gained 0.61%.
Prior to today's trading, shares of the seller of routers, switches, software and services had gained 7.59% over the past month. This has outpaced the Computer and Technology sector's gain of 0.81% and the S&P 500's gain of 1.82% in that time.
Wall Street will be looking for positivity from CSCO as it approaches its next earnings report date. This is expected to be November 21, 2018. On that day, CSCO is projected to report earnings of $0.72 per share, which would represent year-over-year growth of 18.03%. Meanwhile, our latest consensus estimate is calling for revenue of $12.78 billion, up 5.33% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.95 per share and revenue of $51.22 billion. These totals would mark changes of +13.46% and +3.83%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for CSCO. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 1.39% higher. CSCO is currently a Zacks Rank #3 (Hold).
Looking at its valuation, CSCO is holding a Forward P/E ratio of 15.95. Its industry sports an average Forward P/E of 18.1, so we one might conclude that CSCO is trading at a discount comparatively.
We can also see that CSCO currently has a PEG ratio of 2.52. 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. The Computer - Networking industry currently had an average PEG ratio of 1.81 as of yesterday's close.
The Computer - Networking industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 204, which puts it in the bottom 20% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.