In the latest trading session, Cisco Systems (CSCO - Free Report) closed at $48.01, marking a +0.46% move from the previous day. This change outpaced the S&P 500's 0.19% gain on the day. Meanwhile, the Dow gained 0.31%, and the Nasdaq, a tech-heavy index, added 0.08%.
Prior to today's trading, shares of the seller of routers, switches, software and services had gained 2.91% over the past month. This has lagged the Computer and Technology sector's gain of 6.59% and the S&P 500's gain of 3.72% in that time.
CSCO will be looking to display strength as it nears its next earnings release, which is expected to be February 12, 2020. The company is expected to report EPS of $0.76, up 4.11% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $11.98 billion, down 3.74% from the prior-year quarter.
CSCO's full-year Zacks Consensus Estimates are calling for earnings of $3.25 per share and revenue of $51.06 billion. These results would represent year-over-year changes of +4.84% and -1.63%, respectively.
Any recent changes to analyst estimates for CSCO should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. CSCO currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, CSCO is holding a Forward P/E ratio of 14.7. For comparison, its industry has an average Forward P/E of 15.74, which means CSCO is trading at a discount to the group.
We can also see that CSCO currently has a PEG ratio of 2.51. 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. CSCO's industry had an average PEG ratio of 2.51 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 39, which puts it in the top 16% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.