Cisco Systems (CSCO) closed at $112.48 in the latest trading session, marking a -2.68% move from the prior day. The stock's change was less than the S&P 500's daily loss of 1.52%. Elsewhere, the Dow lost 2.19%, while the tech-heavy Nasdaq lost 1.74%.
Heading into today, shares of the seller of routers, switches, software and services had lost 1.6% over the past month, outpacing the Computer and Technology sector's loss of 3.5% and lagging the S&P 500's gain of 1.92%.
Investors will be eagerly watching for the performance of Cisco Systems in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.17, marking a 18.18% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $16.85 billion, showing a 14.86% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $4.28 per share and a revenue of $62.95 billion, demonstrating changes of +12.34% and +11.11%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cisco Systems. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.04% higher. Currently, Cisco Systems is carrying a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Cisco Systems has a Forward P/E ratio of 26.99 right now. This indicates a premium in contrast to its industry's Forward P/E of 19.61.
Also, we should mention that CSCO has a PEG ratio of 2.43. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computer - Networking industry currently had an average PEG ratio of 1.78 as of yesterday's close.
The Computer - Networking industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 172, positioning it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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Cisco Systems, Inc. (CSCO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).