Cisco Systems (CSCO) Gains As Market Dips: What You Should Know
Cisco Systems (CSCO) closed at $46.47 in the latest trading session, marking a +0.28% move from the prior day. This change outpaced the S&P 500's 0.46% loss on the day. At the same time, the Dow lost 0.17%, and the tech-heavy Nasdaq gained 6.06%.
Heading into today, shares of the seller of routers, switches, software and services had lost 9.72% over the past month, lagging the Computer and Technology sector's gain of 0.97% and the S&P 500's gain of 0.85% in that time.
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, the Zacks Consensus Estimate for revenue is projecting net sales of $14.39 billion, up 12.1% from the year-ago period.
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.
It is also important to note the recent changes to analyst estimates for Cisco Systems. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.16% lower. Cisco Systems is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Cisco Systems has a Forward P/E ratio of 12.34 right now. This valuation marks a discount compared to its industry's average Forward P/E of 16.79.
Investors should also note that CSCO has a PEG ratio of 1.9 right now. 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 industry currently had an average PEG ratio of 1.9 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 50, putting it in the top 20% 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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Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report
