In the latest trading session, Cisco Systems (CSCO) closed at $68.68, marking a +1.42% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.48%. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq added 0.94%.
The stock of seller of routers, switches, software and services has risen by 0.91% in the past month, lagging the Computer and Technology sector's gain of 5.46% and the S&P 500's gain of 2.46%.
Analysts and investors alike will be keeping a close eye on the performance of Cisco Systems in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.98, reflecting a 7.69% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $14.77 billion, up 6.69% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.04 per share and a revenue of $59.58 billion, signifying shifts of +6.04% and +5.17%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Cisco Systems. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.77% higher. Cisco Systems currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Cisco Systems is currently trading at a Forward P/E ratio of 16.75. Its industry sports an average Forward P/E of 17.26, so one might conclude that Cisco Systems is trading at a discount comparatively.
It's also important to note that CSCO currently trades at a PEG ratio of 2.34. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computer - Networking industry currently had an average PEG ratio of 1.21 as of yesterday's close.
The Computer - Networking industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 75, positioning it in the top 31% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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