The latest trading session saw Cisco Systems (CSCO) ending at $61.40, denoting a -0.65% adjustment from its last day's close. This change lagged the S&P 500's daily loss of 0.33%. Meanwhile, the Dow lost 0.37%, and the Nasdaq, a tech-heavy index, lost 0.53%.
Shares of the seller of routers, switches, software and services have depreciated by 3.56% over the course of the past month, outperforming the Computer and Technology sector's loss of 7.14% and the S&P 500's loss of 4.03%.
The investment community will be closely monitoring the performance of Cisco Systems in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.91, reflecting a 3.41% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $14.05 billion, reflecting a 10.58% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.72 per share and a revenue of $56.43 billion, indicating changes of -0.27% and +4.88%, respectively, from the former year.
Any recent changes to analyst estimates for Cisco Systems should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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, there's been a 0.39% rise in the Zacks Consensus EPS estimate. Currently, Cisco Systems is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Cisco Systems is presently trading at a Forward P/E ratio of 16.62. This valuation marks a premium compared to its industry's average Forward P/E of 14.62.
One should further note that CSCO currently holds a PEG ratio of 3.26. 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. As the market closed yesterday, the Computer - Networking industry was having an average PEG ratio of 1.12.
The Computer - Networking industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 37, this industry ranks in the top 15% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Cisco Systems, Inc. (CSCO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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