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Cisco Systems (CSCO) closed the most recent trading day at $45.70, moving +0.97% from the previous trading session. The stock outpaced the S&P 500's daily loss of 2.57%. Elsewhere, the Dow lost 2.05%, while the tech-heavy Nasdaq lost 2.61%.
Investors will be hoping for strength from CSCO as it approaches its next earnings release, which is expected to be February 9, 2021. On that day, CSCO is projected to report earnings of $0.76 per share, which would represent a year-over-year decline of 1.3%. Our most recent consensus estimate is calling for quarterly revenue of $11.92 billion, down 0.72% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.18 per share and revenue of $48.84 billion, which would represent changes of -0.93% and -0.93%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for CSCO. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 remained stagnant. CSCO is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that CSCO has a Forward P/E ratio of 14.16 right now. Its industry sports an average Forward P/E of 22.37, so we one might conclude that CSCO is trading at a discount comparatively.
We can also see that CSCO currently has a PEG ratio of 2.26. 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 was holding an average PEG ratio of 2.8 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 112, putting it in the top 44% 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.
To follow CSCO in the coming trading sessions, be sure to utilize Zacks.com.
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Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report
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