Cisco Systems (CSCO) Stock Sinks As Market Gains: What You Should Know

Cisco Systems (CSCO) closed the most recent trading day at $55.69, moving -0.91% from the previous trading session. This change lagged the S&P 500's 0.3% gain on the day.

Prior to today's trading, shares of the seller of routers, switches, software and services had gained 1.22% over the past month. This has lagged the Computer and Technology sector's gain of 1.79% and the S&P 500's gain of 4.28% in that time.

CSCO will be looking to display strength as it nears its next earnings release, which is expected to be November 17, 2021. In that report, analysts expect CSCO to post earnings of $0.81 per share. This would mark year-over-year growth of 6.58%. Our most recent consensus estimate is calling for quarterly revenue of $12.98 billion, up 8.79% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.43 per share and revenue of $52.8 billion. These totals would mark changes of +6.52% and +5.99%, respectively, from last year.

Any recent changes to analyst estimates for CSCO should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. CSCO currently has a Zacks Rank of #2 (Buy).

Digging into valuation, CSCO currently has a Forward P/E ratio of 16.4. For comparison, its industry has an average Forward P/E of 16.19, which means CSCO is trading at a premium to the group.

We can also see that CSCO currently has a PEG ratio of 2.34. 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 2.29 as of yesterday's close.

The Computer - Networking industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 66, putting it in the top 26% 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.

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