Cisco Systems (CSCO) closed the most recent trading day at $73.96, moving -1.02% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.01%. Meanwhile, the Dow gained 0.55%, and the Nasdaq, a tech-heavy index, lost 0.44%.
The stock of seller of routers, switches, software and services has fallen by 6.89% in the past month, lagging the Computer and Technology sector's loss of 0.69% and the S&P 500's gain of 0.86%.
Analysts and investors alike will be keeping a close eye on the performance of Cisco Systems in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.02, showcasing a 8.51% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $15.12 billion, indicating a 8.06% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.1 per share and revenue of $60.59 billion, indicating changes of +7.61% and +6.95%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Cisco Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Cisco Systems is currently a Zacks Rank #3 (Hold).
In terms of valuation, Cisco Systems is presently being traded at a Forward P/E ratio of 18.21. This indicates a premium in contrast to its industry's Forward P/E of 17.19.
We can also see that CSCO currently has a PEG ratio of 2.27. 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. Computer - Networking stocks are, on average, holding a PEG ratio of 1.56 based on yesterday's closing prices.
The Computer - Networking industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 111, this industry ranks in the top 46% of all industries, numbering over 250.
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.
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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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