Cisco Systems (CSCO) ended the recent trading session at $78.68, demonstrating a +2.17% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.41%. Elsewhere, the Dow lost 0.83%, while the tech-heavy Nasdaq added 0.91%.
The stock of seller of routers, switches, software and services has fallen by 1% in the past month, lagging the Computer and Technology sector's gain of 0.49% and the S&P 500's gain of 0.38%.
Analysts and investors alike will be keeping a close eye on the performance of Cisco Systems in its upcoming earnings disclosure. On that day, Cisco Systems is projected to report earnings of $1.02 per share, which would represent year-over-year growth of 8.51%. Simultaneously, our latest consensus estimate expects the revenue to be $15.12 billion, showing a 8.06% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.1 per share and a revenue of $60.59 billion, representing changes of +7.61% and +6.95%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Cisco Systems. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Cisco Systems currently has a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Cisco Systems currently has a Forward P/E ratio of 18.77. This indicates a premium in contrast to its industry's Forward P/E of 16.72.
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. As the market closed yesterday, the Computer - Networking industry was having an average PEG ratio of 1.57.
The Computer - Networking industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 174, finds itself in the bottom 29% echelons of all 250+ industries.
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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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