Cisco Systems (CSCO) closed at $45.75 in the latest trading session, marking a -1.29% move from the prior day. This change was narrower than the S&P 500's 1.66% loss on the day. Meanwhile, the Dow lost 1.56%, and the Nasdaq, a tech-heavy index, lost 3.03%.
Heading into today, shares of the seller of routers, switches, software and services had gained 1.96% over the past month, outpacing the Computer and Technology sector's loss of 5.28% and the S&P 500's loss of 2.43% in that time.
Investors will be hoping for strength from CSCO as it approaches its next earnings release, which is expected to be February 13, 2019. The company is expected to report EPS of $0.72, up 14.29% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $12.37 billion, up 4.03% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3 per share and revenue of $51.43 billion, which would represent changes of +15.38% and +4.26%, respectively, from the prior year.
Investors might also notice 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.
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. The Zacks Consensus EPS estimate has moved 0.04% lower within the past month. CSCO is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note CSCO's current valuation metrics, including its Forward P/E ratio of 15.46. Its industry sports an average Forward P/E of 19.58, so we one might conclude that CSCO is trading at a discount comparatively.
It is also worth noting that CSCO currently has a PEG ratio of 2.44. 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. CSCO's industry had an average PEG ratio of 2.2 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 108, putting it in the top 42% 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.
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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Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report
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