Cisco Systems (CSCO) closed at $119.44 in the latest trading session, marking a +1.8% move from the prior day. The stock's change was more than the S&P 500's daily gain of 1.09%. Meanwhile, the Dow experienced a rise of 0.14%, and the technology-dominated Nasdaq saw an increase of 1.91%.
Shares of the seller of routers, switches, software and services have appreciated by 2.61% over the course of the past month, outperforming the Computer and Technology sector's gain of 0.22%, and the S&P 500's gain of 0.29%.
Investors will be eagerly watching for the performance of Cisco Systems in its upcoming earnings disclosure. The company is expected to report EPS of $1.17, up 18.18% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $16.85 billion, up 14.86% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.28 per share and revenue of $62.95 billion, indicating changes of +12.34% and +11.11%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cisco Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.45% upward. Cisco Systems is currently a Zacks Rank #2 (Buy).
Investors should also note Cisco Systems's current valuation metrics, including its Forward P/E ratio of 27.41. For comparison, its industry has an average Forward P/E of 27.29, which means Cisco Systems is trading at a premium to the group.
It's also important to note that CSCO currently trades at a PEG ratio of 2.47. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Computer - Networking industry stood at 1.98 at the close of the market yesterday.
The Computer - Networking industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 45, placing it within the top 19% of over 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Cisco Systems, Inc. (CSCO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).