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Cisco Systems (CSCO) Dips More Than Broader Markets: What You Should Know

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Cisco Systems (CSCO - Free Report) closed the most recent trading day at $54.59, moving -0.64% from the previous trading session. This change lagged the S&P 500's daily loss of 0.45%. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq lost 0.5%.

Prior to today's trading, shares of the seller of routers, switches, software and services had lost 0.36% over the past month. This has lagged the Computer and Technology sector's gain of 2.84% and the S&P 500's gain of 2.62% 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 May 15, 2019. On that day, CSCO is projected to report earnings of $0.77 per share, which would represent year-over-year growth of 16.67%. Our most recent consensus estimate is calling for quarterly revenue of $12.90 billion, up 3.48% from the year-ago period.

CSCO's full-year Zacks Consensus Estimates are calling for earnings of $3.06 per share and revenue of $51.67 billion. These results would represent year-over-year changes of +17.69% and +4.75%, respectively.

Investors might also notice recent changes to analyst estimates for CSCO. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. CSCO is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note CSCO's current valuation metrics, including its Forward P/E ratio of 17.96. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 17.96.

Also, we should mention that CSCO has a PEG ratio of 2.57. 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. CSCO's industry had an average PEG ratio of 2.03 as of yesterday's close.

The Computer - Networking industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 206, putting it in the bottom 20% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.




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