Cisco Systems (CSCO) closed the most recent trading day at $47.77, moving -0.17% from the previous trading session. This change lagged the S&P 500's daily of 0%. At the same time, the Dow added 0.08%, and the tech-heavy Nasdaq lost 0.18%.
Heading into today, shares of the seller of routers, switches, software and services had gained 5.77% over the past month, outpacing the Computer and Technology sector's gain of 4.19% and the S&P 500's gain of 3.37% in that time.
CSCO will be looking to display strength as it nears its next earnings release, which is expected to be February 12, 2020. In that report, analysts expect CSCO to post earnings of $0.76 per share. This would mark year-over-year growth of 4.11%. Meanwhile, our latest consensus estimate is calling for revenue of $11.98 billion, down 3.74% from the prior-year quarter.
CSCO's full-year Zacks Consensus Estimates are calling for earnings of $3.25 per share and revenue of $51.06 billion. These results would represent year-over-year changes of +4.84% and -1.63%, respectively.
Investors should also note any recent changes to analyst estimates for CSCO. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection remained stagnant. CSCO is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, CSCO is currently trading at a Forward P/E ratio of 14.71. This represents a discount compared to its industry's average Forward P/E of 15.4.
Investors should also note that CSCO has a PEG ratio of 2.51 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 2.51 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 101, putting it in the top 40% 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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