Cisco Systems (CSCO) closed the most recent trading day at $69.38, moving +1.06% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.52%. Meanwhile, the Dow gained 0.63%, and the Nasdaq, a tech-heavy index, added 0.48%.
The stock of seller of routers, switches, software and services has risen by 8.9% in the past month, leading the Computer and Technology sector's gain of 7.56% and the S&P 500's gain of 4.27%.
The upcoming earnings release of Cisco Systems will be of great interest to investors. The company is forecasted to report an EPS of $0.97, showcasing a 11.49% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $14.61 billion, reflecting a 7.12% rise from the equivalent quarter last year.
CSCO's full-year Zacks Consensus Estimates are calling for earnings of $3.79 per share and revenue of $56.59 billion. These results would represent year-over-year changes of +1.61% and +5.19%, respectively.
Investors should also note any recent changes to analyst estimates for Cisco Systems. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
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, there's been a 0.03% fall in the Zacks Consensus EPS estimate. Cisco Systems presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Cisco Systems has a Forward P/E ratio of 18.13 right now. This represents a premium compared to its industry average Forward P/E of 17.63.
It is also worth noting that CSCO currently has a PEG ratio of 3.32. 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. The Computer - Networking industry currently had an average PEG ratio of 1.29 as of yesterday's close.
The Computer - Networking industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 96, putting it in the top 40% 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.
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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