Cisco Systems (CSCO) Dips More Than Broader Market: What You Should Know
Cisco Systems (CSCO) ended the recent trading session at $56.59, demonstrating a -0.3% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.18%. Elsewhere, the Dow lost 0.8%, while the tech-heavy Nasdaq added 0.27%.
Coming into today, shares of the seller of routers, switches, software and services had gained 9.22% in the past month. In that same time, the Computer and Technology sector gained 6.6%, while the S&P 500 gained 4.46%.
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 $0.87, marking a 21.62% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $13.76 billion, down 6.22% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.56 per share and a revenue of $55.61 billion, signifying shifts of -4.56% and +3.36%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Cisco Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Cisco Systems presently features a Zacks Rank of #2 (Buy).
In terms of valuation, Cisco Systems is currently trading at a Forward P/E ratio of 15.96. This signifies a premium in comparison to the average Forward P/E of 14.87 for its industry.
It's also important to note that CSCO currently trades at a PEG ratio of 3.64. 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. Computer - Networking stocks are, on average, holding a PEG ratio of 1.22 based on yesterday's closing prices.
The Computer - Networking industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 160, which puts it in the bottom 37% 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.
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Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report