Cisco Systems (CSCO) ended the recent trading session at $80.64, demonstrating a +2.96% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.54%. At the same time, the Dow added 1.05%, and the tech-heavy Nasdaq gained 0.56%.
Heading into today, shares of the seller of routers, switches, software and services had gained 3% over the past month, outpacing the Computer and Technology sector's gain of 0.44% and the S&P 500's gain of 0.74%.
Analysts and investors alike will be keeping a close eye on the performance of Cisco Systems in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.02, signifying a 8.51% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $15.12 billion, indicating a 8.06% upward movement from the same quarter last year.
CSCO's full-year Zacks Consensus Estimates are calling for earnings of $4.1 per share and revenue of $60.59 billion. These results would represent year-over-year changes of +7.61% and +6.95%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Cisco Systems. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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, 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 past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Cisco Systems is carrying a Zacks Rank of #2 (Buy).
In the context of valuation, Cisco Systems is at present trading with a Forward P/E ratio of 19.09. This represents a premium compared to its industry average Forward P/E of 16.48.
Meanwhile, CSCO's PEG ratio is currently 2.38. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. CSCO's industry had an average PEG ratio of 1.58 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 168, positioning it in the bottom 32% 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.
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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