Cisco Systems (CSCO) Dips More Than Broader Markets: What You Should Know
Cisco Systems (CSCO) closed the most recent trading day at $45.96, moving -0.86% from the previous trading session. This move lagged the S&P 500's daily loss of 0.7%. Meanwhile, the Dow lost 0.8%, and the Nasdaq, a tech-heavy index, lost 1.82%.
Coming into today, shares of the seller of routers, switches, software and services had lost 10.54% in the past month. In that same time, the Computer and Technology sector lost 1.16%, while the S&P 500 gained 0.39%.
Cisco Systems will be looking to display strength as it nears its next earnings release, which is expected to be May 17, 2023. 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%. Meanwhile, our latest consensus estimate is calling for revenue of $14.39 billion, up 12.1% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.76 per share and revenue of $56.56 billion, which would represent changes of +11.9% and +9.69%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Cisco Systems. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.16% lower. Cisco Systems is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Cisco Systems currently has a Forward P/E ratio of 12.34. Its industry sports an average Forward P/E of 16.73, so we one might conclude that Cisco Systems is trading at a discount comparatively.
It is also worth noting that CSCO currently has a PEG ratio of 1.9. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Networking was holding an average PEG ratio of 1.9 at yesterday's closing price.
The Computer - Networking industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 36% 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.
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 Report
