Cisco Systems (CSCO - Free Report) closed at $52.34 in the latest trading session, marking a -0.49% move from the prior day. This move lagged the S&P 500's daily gain of 0.08%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, added 0.38%.
Heading into today, shares of the seller of routers, switches, software and services had lost 6.64% over the past month, lagging the Computer and Technology sector's loss of 3.22% and the S&P 500's loss of 3.57% in that time.
CSCO will be looking to display strength as it nears its next earnings release, which is expected to be August 14, 2019. The company is expected to report EPS of $0.82, up 17.14% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $13.39 billion, up 4.22% from the year-ago period.
It is also important to note the recent changes to analyst estimates for CSCO. These revisions help to show the ever-changing nature of near-term business trends. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.24% lower. CSCO currently has a Zacks Rank of #3 (Hold).
Digging into valuation, CSCO currently has a Forward P/E ratio of 15.36. Its industry sports an average Forward P/E of 15.95, so we one might conclude that CSCO is trading at a discount comparatively.
Meanwhile, CSCO's PEG ratio is currently 2.19. 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. CSCO's industry had an average PEG ratio of 2.19 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 189, which puts it in the bottom 27% 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.