U.S. Markets closed
  • S&P Futures

    3,837.25
    -8.75 (-0.23%)
     
  • Dow Futures

    30,996.00
    -86.00 (-0.28%)
     
  • Nasdaq Futures

    13,355.50
    -40.00 (-0.30%)
     
  • Russell 2000 Futures

    2,137.00
    -1.50 (-0.07%)
     
  • Crude Oil

    52.59
    -0.54 (-1.02%)
     
  • Gold

    1,863.30
    -2.60 (-0.14%)
     
  • Silver

    25.67
    -0.18 (-0.69%)
     
  • EUR/USD

    1.2179
    +0.0006 (+0.0487%)
     
  • 10-Yr Bond

    1.1090
    +0.0190 (+1.74%)
     
  • Vix

    21.32
    -0.26 (-1.20%)
     
  • GBP/USD

    1.3712
    -0.0018 (-0.1344%)
     
  • USD/JPY

    103.5670
    +0.0620 (+0.0599%)
     
  • BTC-USD

    30,862.95
    +295.23 (+0.97%)
     
  • CMC Crypto 200

    611.11
    -68.79 (-10.12%)
     
  • FTSE 100

    6,715.42
    -24.97 (-0.37%)
     
  • Nikkei 225

    28,678.21
    -78.65 (-0.27%)
     

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

Zacks Equity Research
·3 min read

Cisco Systems (CSCO) closed the most recent trading day at $44.40, moving +0.95% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.57%. At the same time, the Dow added 1.44%, and the tech-heavy Nasdaq lost 0.61%.

Heading into today, shares of the seller of routers, switches, software and services had lost 0.88% over the past month, lagging the Computer and Technology sector's gain of 1.94% and the S&P 500's gain of 0.83% in that time.

Investors will be hoping for strength from CSCO as it approaches its next earnings release. In that report, analysts expect CSCO to post earnings of $0.76 per share. This would mark a year-over-year decline of 1.3%. Meanwhile, our latest consensus estimate is calling for revenue of $11.91 billion, down 0.8% from the prior-year quarter.

CSCO's full-year Zacks Consensus Estimates are calling for earnings of $3.17 per share and revenue of $48.76 billion. These results would represent year-over-year changes of -1.25% and -1.09%, respectively.

It is also important to note the recent changes to analyst estimates for CSCO. 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.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. CSCO is currently a Zacks Rank #3 (Hold).

Investors should also note CSCO's current valuation metrics, including its Forward P/E ratio of 13.87. This valuation marks a discount compared to its industry's average Forward P/E of 20.93.

We can also see that CSCO currently has a PEG ratio of 2.22. 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 industry currently had an average PEG ratio of 3.06 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 55, putting it in the top 22% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.