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Cisco Systems (CSCO) Outpaces Stock Market Gains: What You Should Know
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Cisco Systems (CSCO - Free Report) closed at $55.14 in the latest trading session, marking a +1.3% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.15%.
Coming into today, shares of the seller of routers, switches, software and services had lost 8.57% in the past month. In that same time, the Computer and Technology sector lost 6.41%, while the S&P 500 lost 4.67%.
Investors will be hoping for strength from CSCO as it approaches its next earnings release. On that day, CSCO is projected to report earnings of $0.81 per share, which would represent year-over-year growth of 6.58%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.97 billion, up 8.74% from the year-ago period.
CSCO's full-year Zacks Consensus Estimates are calling for earnings of $3.43 per share and revenue of $52.78 billion. These results would represent year-over-year changes of +6.52% and +5.95%, respectively.
It is also important to note the recent changes to analyst estimates for CSCO. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. CSCO is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, CSCO currently has a Forward P/E ratio of 15.86. For comparison, its industry has an average Forward P/E of 15.09, which means CSCO is trading at a premium to the group.
Also, we should mention that CSCO has a PEG ratio of 2.27. 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. The Computer - Networking was holding an average PEG ratio of 3.38 at yesterday's closing price.
The Computer - Networking industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 232, putting it in the bottom 9% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Cisco Systems (CSCO) Outpaces Stock Market Gains: What You Should Know
Cisco Systems (CSCO - Free Report) closed at $55.14 in the latest trading session, marking a +1.3% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.15%.
Coming into today, shares of the seller of routers, switches, software and services had lost 8.57% in the past month. In that same time, the Computer and Technology sector lost 6.41%, while the S&P 500 lost 4.67%.
Investors will be hoping for strength from CSCO as it approaches its next earnings release. On that day, CSCO is projected to report earnings of $0.81 per share, which would represent year-over-year growth of 6.58%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.97 billion, up 8.74% from the year-ago period.
CSCO's full-year Zacks Consensus Estimates are calling for earnings of $3.43 per share and revenue of $52.78 billion. These results would represent year-over-year changes of +6.52% and +5.95%, respectively.
It is also important to note the recent changes to analyst estimates for CSCO. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. CSCO is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, CSCO currently has a Forward P/E ratio of 15.86. For comparison, its industry has an average Forward P/E of 15.09, which means CSCO is trading at a premium to the group.
Also, we should mention that CSCO has a PEG ratio of 2.27. 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. The Computer - Networking was holding an average PEG ratio of 3.38 at yesterday's closing price.
The Computer - Networking industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 232, putting it in the bottom 9% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.