Cisco Systems (CSCO) ended the recent trading session at $59.30, demonstrating a -0.05% swing from the preceding day's closing price. This move was narrower than the S&P 500's daily loss of 0.64%. On the other hand, the Dow registered a loss of 0.24%, and the technology-centric Nasdaq decreased by 0.74%.
The seller of routers, switches, software and services's shares have seen an increase of 8.78% over the last month, surpassing the Computer and Technology sector's gain of 3.67% 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. The company's earnings report is set to go public on May 14, 2025. In that report, analysts expect Cisco Systems to post earnings of $0.91 per share. This would mark year-over-year growth of 3.41%. 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.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.73 per share and revenue of $56.44 billion, which would represent changes of 0% and +4.9%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Cisco Systems. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.16% upward. Cisco Systems is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Cisco Systems is currently trading at a Forward P/E ratio of 15.93. This expresses a premium compared to the average Forward P/E of 13.65 of its industry.
It is also worth noting that CSCO currently has a PEG ratio of 3.12. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer - Networking industry currently had an average PEG ratio of 1.05 as of yesterday's close.
The Computer - Networking industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 159, finds itself in the bottom 36% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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