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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 $51.94 in the latest trading session, marking a +1.13% move from the prior day. This change outpaced the S&P 500's 0.57% gain on the day. At the same time, the Dow added 0.7%, and the tech-heavy Nasdaq lost 0.1%.
Coming into today, shares of the seller of routers, switches, software and services had lost 6.57% in the past month. In that same time, the Computer and Technology sector lost 11.12%, while the S&P 500 lost 5.26%.
Cisco Systems will be looking to display strength as it nears its next earnings release, which is expected to be May 18, 2022. The company is expected to report EPS of $0.86, up 3.61% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.33 billion, up 4.1% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.45 per share and revenue of $52.84 billion, which would represent changes of +7.14% and +6.07%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Cisco Systems. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. Cisco Systems currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Cisco Systems has a Forward P/E ratio of 14.9 right now. This valuation marks a discount compared to its industry's average Forward P/E of 16.08.
Also, we should mention that CSCO has a PEG ratio of 2.29. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Computer - Networking stocks are, on average, holding a PEG ratio of 2.29 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 42, which puts it in the top 17% 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.
You can find more information on all of these metrics, and much 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 $51.94 in the latest trading session, marking a +1.13% move from the prior day. This change outpaced the S&P 500's 0.57% gain on the day. At the same time, the Dow added 0.7%, and the tech-heavy Nasdaq lost 0.1%.
Coming into today, shares of the seller of routers, switches, software and services had lost 6.57% in the past month. In that same time, the Computer and Technology sector lost 11.12%, while the S&P 500 lost 5.26%.
Cisco Systems will be looking to display strength as it nears its next earnings release, which is expected to be May 18, 2022. The company is expected to report EPS of $0.86, up 3.61% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.33 billion, up 4.1% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.45 per share and revenue of $52.84 billion, which would represent changes of +7.14% and +6.07%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Cisco Systems. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. Cisco Systems currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Cisco Systems has a Forward P/E ratio of 14.9 right now. This valuation marks a discount compared to its industry's average Forward P/E of 16.08.
Also, we should mention that CSCO has a PEG ratio of 2.29. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Computer - Networking stocks are, on average, holding a PEG ratio of 2.29 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 42, which puts it in the top 17% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.