Cisco Systems (CSCO) Gains But Lags Market: What You Should Know
Cisco Systems (CSCO) closed at $61.53 in the latest trading session, marking a +0.82% move from the prior day. The stock lagged the S&P 500's daily gain of 1.02%. At the same time, the Dow added 0.74%, and the tech-heavy Nasdaq lost 0.4%.
Heading into today, shares of the seller of routers, switches, software and services had gained 10.36% over the past month, outpacing the Computer and Technology sector's loss of 3.79% and the S&P 500's loss of 0.91% in that time.
Wall Street will be looking for positivity from Cisco Systems as it approaches its next earnings report date. The company is expected to report EPS of $0.81, up 2.53% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $12.65 billion, up 5.77% from the prior-year quarter.
CSCO's full-year Zacks Consensus Estimates are calling for earnings of $3.42 per share and revenue of $52.67 billion. These results would represent year-over-year changes of +6.21% and +5.72%, respectively.
It is also important to note the recent changes to analyst estimates for Cisco Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% lower. Cisco Systems is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Cisco Systems is holding a Forward P/E ratio of 17.86. Its industry sports an average Forward P/E of 18.8, so we one might conclude that Cisco Systems is trading at a discount comparatively.
Meanwhile, CSCO's PEG ratio is currently 2.75. 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. The Computer - Networking was holding an average PEG ratio of 2.75 at yesterday's closing price.
The Computer - Networking industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 216, putting it in the bottom 15% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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