Cisco Systems (CSCO) closed at $108.59 in the latest trading session, marking a -1.54% move from the prior day. This change lagged the S&P 500's daily loss of 0.31%. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq lost 1.38%.
Heading into today, shares of the seller of routers, switches, software and services had gained 2.47% over the past month, outpacing the Computer and Technology sector's loss of 3.14% and the S&P 500's gain of 0.87%.
The investment community will be closely monitoring the performance of Cisco Systems in its forthcoming earnings report. On that day, Cisco Systems is projected to report earnings of $1.33 per share, which would represent year-over-year growth of 33%. In the meantime, our current consensus estimate forecasts the revenue to be $18.09 billion, indicating a 21.54% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.11 per share and a revenue of $73.03 billion, representing changes of +18.01% and +15.33%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Cisco Systems. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.
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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.05% increase. At present, Cisco Systems boasts a Zacks Rank of #2 (Buy).
Looking at its valuation, Cisco Systems is holding a Forward P/E ratio of 21.57. This signifies a discount in comparison to the average Forward P/E of 23.13 for its industry.
Investors should also note that CSCO has a PEG ratio of 1.98 right now. 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. As of the close of trade yesterday, the Computer - Networking industry held an average PEG ratio of 1.45.
The Computer - Networking industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 75, positioning it in the top 31% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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Cisco Systems, Inc. (CSCO): Free Stock Analysis Report
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