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Cisco Systems (CSCO) Ascends While Market Falls: Some Facts to Note

Cisco Systems (CSCO) closed the latest trading day at $48.32, indicating a +0.44% change from the previous session's end. The stock outpaced the S&P 500's daily loss of 0.88%. Meanwhile, the Dow experienced a rise of 0.56%, and the technology-dominated Nasdaq saw a decrease of 2.05%.

Prior to today's trading, shares of the seller of routers, switches, software and services had lost 3.55% over the past month. This has lagged the Computer and Technology sector's loss of 3.33% and the S&P 500's loss of 2.57% in that time.

The investment community will be paying close attention to the earnings performance of Cisco Systems in its upcoming release. The company is slated to reveal its earnings on May 15, 2024. The company is predicted to post an EPS of $0.84, indicating a 16% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $12.4 billion, down 14.91% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.69 per share and a revenue of $52.74 billion, representing changes of -5.14% and -7.47%, respectively, from the prior year.

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Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Cisco Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.32% lower. As of now, Cisco Systems holds a Zacks Rank of #4 (Sell).

With respect to valuation, Cisco Systems is currently being traded at a Forward P/E ratio of 13.04. For comparison, its industry has an average Forward P/E of 13.66, which means Cisco Systems is trading at a discount to the group.

It is also worth noting that CSCO currently has a PEG ratio of 2.35. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. CSCO's industry had an average PEG ratio of 1.1 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 96, which puts it in the top 39% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report

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