Cisco Systems (CSCO) ended the recent trading session at $67.39, demonstrating a +1.61% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.96%. At the same time, the Dow added 0.89%, and the tech-heavy Nasdaq gained 0.94%.
Coming into today, shares of the seller of routers, switches, software and services had gained 5.09% in the past month. In that same time, the Computer and Technology sector gained 2.53%, while the S&P 500 gained 0.5%.
The investment community will be closely monitoring the performance of Cisco Systems in its forthcoming earnings report. On that day, Cisco Systems is projected to report earnings of $0.97 per share, which would represent year-over-year growth of 11.49%. In the meantime, our current consensus estimate forecasts the revenue to be $14.61 billion, indicating a 7.08% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.79 per share and a revenue of $56.59 billion, indicating changes of +1.61% and +5.18%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Cisco Systems. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.02% increase. Cisco Systems currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Cisco Systems is presently being traded at a Forward P/E ratio of 17.51. This signifies a premium in comparison to the average Forward P/E of 16.84 for its industry.
We can additionally observe that CSCO currently boasts a PEG ratio of 3.21. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Computer - Networking industry was having an average PEG ratio of 1.21.
The Computer - Networking industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 183, positioning it in the bottom 26% of all 250+ industries.
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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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