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Cisco Systems (CSCO) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Cisco Systems (CSCO) closed at $53.44, marking a +0.83% move from the previous day. This change outpaced the S&P 500's 0.52% gain on the day.

Heading into today, shares of the seller of routers, switches, software and services had gained 0.08% over the past month, lagging the Computer and Technology sector's gain of 6.22% and the S&P 500's gain of 2.25% in that time.

Investors will be hoping for strength from CSCO as it approaches its next earnings release. On that day, CSCO is projected to report earnings of $0.82 per share, which would represent year-over-year growth of 2.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.04 billion, up 7.25% from the year-ago period.

CSCO's full-year Zacks Consensus Estimates are calling for earnings of $3.20 per share and revenue of $49.67 billion. These results would represent year-over-year changes of -0.31% and +0.75%, respectively.

Investors should also note any recent changes to analyst estimates for CSCO. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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 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 remained stagnant. CSCO is currently a Zacks Rank #4 (Sell).

Digging into valuation, CSCO currently has a Forward P/E ratio of 16.54. This valuation marks a discount compared to its industry's average Forward P/E of 18.3.

Investors should also note that CSCO has a PEG ratio of 2.65 right now. 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. CSCO's industry had an average PEG ratio of 3.29 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 235, putting it in the bottom 8% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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