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Cisco Systems (CSCO) Gains But Lags Market: What You Should Know
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Cisco Systems (CSCO - Free Report) closed the most recent trading day at $52.15, moving +0.64% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.12%. At the same time, the Dow added 1.01%, and the tech-heavy Nasdaq lost 0.08%.
Prior to today's trading, shares of the seller of routers, switches, software and services had lost 6.8% over the past month. This has lagged the Computer and Technology sector's gain of 2.22% and the S&P 500's gain of 4.63% in that time.
Investors will be hoping for strength from Cisco Systems as it approaches its next earnings release. In that report, analysts expect Cisco Systems to post earnings of $0.86 per share. This would mark year-over-year growth of 3.61%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.31 billion, up 3.98% from the year-ago period.
CSCO's full-year Zacks Consensus Estimates are calling for earnings of $3.45 per share and revenue of $52.83 billion. These results would represent year-over-year changes of +7.14% and +6.04%, respectively.
Investors should also note any recent changes to analyst estimates for Cisco Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Cisco Systems is currently a Zacks Rank #3 (Hold).
In terms of valuation, Cisco Systems is currently trading at a Forward P/E ratio of 15.04. Its industry sports an average Forward P/E of 15.04, so we one might conclude that Cisco Systems is trading at a no noticeable deviation comparatively.
We can also see that CSCO currently has a PEG ratio of 2.31. 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 industry currently had an average PEG ratio of 2.31 as of yesterday's close.
The Computer - Networking industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 70, which puts it in the top 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Cisco Systems (CSCO) Gains But Lags Market: What You Should Know
Cisco Systems (CSCO - Free Report) closed the most recent trading day at $52.15, moving +0.64% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.12%. At the same time, the Dow added 1.01%, and the tech-heavy Nasdaq lost 0.08%.
Prior to today's trading, shares of the seller of routers, switches, software and services had lost 6.8% over the past month. This has lagged the Computer and Technology sector's gain of 2.22% and the S&P 500's gain of 4.63% in that time.
Investors will be hoping for strength from Cisco Systems as it approaches its next earnings release. In that report, analysts expect Cisco Systems to post earnings of $0.86 per share. This would mark year-over-year growth of 3.61%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.31 billion, up 3.98% from the year-ago period.
CSCO's full-year Zacks Consensus Estimates are calling for earnings of $3.45 per share and revenue of $52.83 billion. These results would represent year-over-year changes of +7.14% and +6.04%, respectively.
Investors should also note any recent changes to analyst estimates for Cisco Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Cisco Systems is currently a Zacks Rank #3 (Hold).
In terms of valuation, Cisco Systems is currently trading at a Forward P/E ratio of 15.04. Its industry sports an average Forward P/E of 15.04, so we one might conclude that Cisco Systems is trading at a no noticeable deviation comparatively.
We can also see that CSCO currently has a PEG ratio of 2.31. 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 industry currently had an average PEG ratio of 2.31 as of yesterday's close.
The Computer - Networking industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 70, which puts it in the top 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.