Cisco Systems (CSCO) closed the most recent trading day at $104.89, moving -2.21% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 1.21% for the day. Meanwhile, the Dow gained 0.02%, and the Nasdaq, a tech-heavy index, lost 2.6%.
The seller of routers, switches, software and services's shares have seen an increase of 0.78% over the last month, surpassing the Computer and Technology sector's loss of 3.87% and the S&P 500's loss of 0.03%.
Analysts and investors alike will be keeping a close eye on the performance of Cisco Systems in its upcoming earnings disclosure. The company is expected to report EPS of $1.33, up 33% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $18.09 billion, showing a 21.54% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $5.11 per share and a revenue of $73.03 billion, demonstrating changes of +18.01% and +15.33%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Cisco Systems. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.05% higher. Right now, Cisco Systems possesses a Zacks Rank of #2 (Buy).
In terms of valuation, Cisco Systems is currently trading at a Forward P/E ratio of 20.98. This signifies a discount in comparison to the average Forward P/E of 22.37 for its industry.
We can additionally observe that CSCO currently boasts a PEG ratio of 1.93. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Computer - Networking stocks are, on average, holding a PEG ratio of 1.39 based on yesterday's closing prices.
The Computer - Networking industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 37, finds itself in the top 16% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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
This article originally published on Zacks Investment Research (zacks.com).