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Cisco Systems (CSCO) closed the most recent trading day at $57.34, moving +0.88% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.58%. On the other hand, the Dow registered a gain of 0.75%, and the technology-centric Nasdaq increased by 0.55%.
Coming into today, shares of the seller of routers, switches, software and services had lost 7.89% in the past month. In that same time, the Computer and Technology sector gained 0.6%, while the S&P 500 lost 0.84%.
The investment community will be paying close attention to the earnings performance of Cisco Systems in its upcoming release. The company is forecasted to report an EPS of $0.91, showcasing a 3.41% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $14.05 billion, up 10.58% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.73 per share and a revenue of $56.44 billion, signifying shifts of 0% and +4.9%, respectively, from the last 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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.16% upward. Right now, Cisco Systems possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Cisco Systems is currently being traded at a Forward P/E ratio of 15.26. This expresses a premium compared to the average Forward P/E of 12.95 of its industry.
One should further note that CSCO currently holds a PEG ratio of 2.99. 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. The average PEG ratio for the Computer - Networking industry stood at 0.98 at the close of the market yesterday.