Cisco Systems (CSCO) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Cisco Systems (CSCO) closed at $49.73, marking a +0.55% move from the previous day. This move outpaced the S&P 500's daily gain of 0.3%. Meanwhile, the Dow gained 0.24%, and the Nasdaq, a tech-heavy index, added 0.34%.
Coming into today, shares of the seller of routers, switches, software and services had gained 0.3% in the past month. In that same time, the Computer and Technology sector gained 5.82%, while the S&P 500 lost 1.21%.
Wall Street will be looking for positivity from Cisco Systems as it approaches its next earnings report date. The company is expected to report EPS of $0.97, up 11.49% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $14.39 billion, up 12.1% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.76 per share and revenue of $56.54 billion, which would represent changes of +11.9% and +9.67%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Cisco Systems. 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.
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 has moved 0.14% higher within the past month. Cisco Systems is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Cisco Systems is currently trading at a Forward P/E ratio of 13.16. This represents a discount compared to its industry's average Forward P/E of 19.25.
It is also worth noting that CSCO currently has a PEG ratio of 2.02. 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 2.02 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 156, which puts it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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