Cisco Systems (CSCO - Free Report) closed at $55.29 in the latest trading session, marking a +0.55% move from the prior day. The stock outpaced the S&P 500's daily of 0%. Elsewhere, the Dow lost 0.3%, while the tech-heavy Nasdaq added 0.25%.
Coming into today, shares of the seller of routers, switches, software and services had gained 7.47% in the past month. In that same time, the Computer and Technology sector gained 3.92%, while the S&P 500 gained 2.36%.
CSCO will be looking to display strength as it nears its next earnings release. On that day, CSCO is projected to report earnings of $0.77 per share, which would represent year-over-year growth of 16.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.89 billion, up 3.4% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.06 per share and revenue of $51.67 billion. These totals would mark changes of +17.69% and +4.73%, respectively, from last year.
Any recent changes to analyst estimates for CSCO should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.09% higher. CSCO currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that CSCO has a Forward P/E ratio of 17.99 right now. Its industry sports an average Forward P/E of 17.23, so we one might conclude that CSCO is trading at a premium comparatively.
Investors should also note that CSCO has a PEG ratio of 2.57 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Networking was holding an average PEG ratio of 1.98 at yesterday's closing price.
The Computer - Networking industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 79, putting it in the top 31% of all 250+ industries.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.