Yahoo Finance Why Cisco Systems (CSCO) Dipped More Than Broader Market Today
Cisco Systems (CSCO) closed the latest trading day at $48.10, indicating a -0.52% change from the previous session's end. The stock's performance was behind the S&P 500's daily loss of 0.46%. Meanwhile, the Dow lost 0.98%, and the Nasdaq, a tech-heavy index, lost 0.64%.
Prior to today's trading, shares of the seller of routers, switches, software and services had lost 2.85% over the past month. This has was narrower than the Computer and Technology sector's loss of 5.01% and the S&P 500's loss of 3.04% in that time.
The upcoming earnings release of Cisco Systems will be of great interest to investors. The company's earnings report is expected on May 15, 2024. In that report, analysts expect Cisco Systems to post earnings of $0.83 per share. This would mark a year-over-year decline of 17%. Meanwhile, our latest consensus estimate is calling for revenue of $12.44 billion, down 14.62% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.68 per share and a revenue of $53.04 billion, indicating changes of -5.4% and -6.94%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Cisco Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.79% lower. Cisco Systems presently features a Zacks Rank of #4 (Sell).
Looking at valuation, Cisco Systems is presently trading at a Forward P/E ratio of 13.15. This signifies a discount in comparison to the average Forward P/E of 13.99 for its industry.
Investors should also note that CSCO has a PEG ratio of 2.38 right now. 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. The Computer - Networking was holding an average PEG ratio of 1.12 at yesterday's closing price.
The Computer - Networking industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 76, which puts it in the top 31% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report
