In the latest trading session, Cisco Systems (CSCO) closed at $49.19, marking a -0.3% move from the previous day. This change lagged the S&P 500's daily of 0%. Elsewhere, the Dow lost 0.19%, while the tech-heavy Nasdaq added 0.07%.
Coming into today, shares of the seller of routers, switches, software and services had gained 1.17% in the past month. In that same time, the Computer and Technology sector gained 4.17%, while the S&P 500 gained 4.25%.
CSCO will be looking to display strength as it nears its next earnings release. In that report, analysts expect CSCO to post earnings of $0.81 per share. This would mark year-over-year growth of 8%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.07 billion, down 0.02% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.37 per share and revenue of $52.90 billion, which would represent changes of +8.71% and +1.92%, respectively, from the prior year.
Investors should also note any 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.
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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. CSCO is currently a Zacks Rank #3 (Hold).
Looking at its valuation, CSCO is holding a Forward P/E ratio of 14.64. This valuation marks a discount compared to its industry's average Forward P/E of 15.3.
It is also worth noting that CSCO currently has a PEG ratio of 2.15. 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. Computer - Networking stocks are, on average, holding a PEG ratio of 2.15 based on yesterday's closing prices.
The Computer - Networking industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow CSCO in the coming trading sessions, be sure to utilize Zacks.com.
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