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Cisco Systems CSCO shares have surged 16% in the trailing 12 months, underperforming the Zacks Computer & Technology sector’s appreciation of 30.7% and the Zacks Computer – Networking industry’s return of 15.3%.
Cisco’s expanding footprint across diverse sectors, including cybersecurity, AI infrastructure, cloud solutions, and enterprise networking, is driving its growth and boosting its share performance.
CSCO’s strategic partnerships with industry leaders have significantly enhanced its market presence. Its robust portfolio, along with a strong partner ecosystem has been a key catalyst.
Furthermore, advancements in cybersecurity, with offerings like XDR and Secure Access, have strengthened Cisco’s position in the market.
One-Year Performance
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The stock is currently trading above the 50-day and 200-day moving averages, indicating a bullish trend.
CSCO Stock Trades Above the 50-Day and 200-Day SMA
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However, CSCO stock is not so cheap, as its Value Score of C suggests a stretched valuation at this moment.
In terms of the forward 12-month price/sales, CSCO is trading at 4.04X, higher than its median of 3.69X and the industry’s 3.52X.
Price/Sales Ratio (F12M)
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CSCO’s Earnings Estimate Indicates Positive Trend
For the second-quarter fiscal 2025, Cisco expects revenues to be $13.75 - $13.95 billion. The non-GAAP earnings per share is expected to be between 89 cents per share and 91 cents per share.
The Zacks Consensus Estimate for the second-quarter fiscal 2025 revenues is pegged at $13.86 billion, indicating 8.36% year-over-year growth.
The consensus mark for earnings is currently pegged at 91 cents per share, up by a penny over the past 30 days, suggesting year-over-year growth of 4.6%.
For fiscal 2025, CSCO expects revenues to be $55.3 - $56.3 billion. The non-GAAP earnings are expected to be between $3.60 per share and $3.66 per share.
The Zacks Consensus Estimate for full-year fiscal 2025 revenues is pegged at $55.93 billion, indicating 3.95% year-over-year growth.
The consensus mark for fiscal 2025 earnings is currently pegged at $3.64 per share, up by 2 cents over the past 30 days, suggesting a year-over-year decrease of 2.41%.
CSCO has beaten the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 4.14%.
Cisco Systems, Inc. Price and Consensus
Cisco Systems, Inc. price-consensus-chart | Cisco Systems, Inc. Quote
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Rich Partner Base Aids CSCO’s Prospects
Cisco is leveraging its robust portfolio and rich partner base with NVIDIA NVDA, Meta Platforms META, Microsoft, Lenovo and AT&T to drive innovation. Its NVIDIA-powered AI server and AI PODs, integrated with NVIDIA’s AI Enterprise cloud-native software and managed via Cisco Intersight, simplify and de-risk AI infrastructure.