Back to top

Image: Bigstock

Cisco Systems (CSCO) Stock Moves -1.58%: What You Should Know

Read MoreHide Full Article

In the latest trading session, Cisco Systems (CSCO - Free Report) closed at $44.75, marking a -1.58% move from the previous day. This change was narrower than the S&P 500's 2.59% loss on the day. At the same time, the Dow lost 2.72%, and the tech-heavy Nasdaq lost 2.19%.

Wall Street will be looking for positivity from CSCO as it approaches its next earnings report date. In that report, analysts expect CSCO to post earnings of $0.74 per share. This would mark a year-over-year decline of 10.84%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.09 billion, down 9.94% from the year-ago period.

CSCO's full-year Zacks Consensus Estimates are calling for earnings of $3.15 per share and revenue of $49.24 billion. These results would represent year-over-year changes of +1.61% and -5.13%, respectively.

Investors might also notice recent changes to analyst estimates for CSCO. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% higher. CSCO is currently a Zacks Rank #3 (Hold).

Digging into valuation, CSCO currently has a Forward P/E ratio of 14.45. This valuation marks a discount compared to its industry's average Forward P/E of 84.

We can also see that CSCO currently has a PEG ratio of 2.68. 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 industry currently had an average PEG ratio of 2.9 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 154, which puts it in the bottom 40% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Cisco Systems, Inc. (CSCO) - free report >>

Published in