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Cisco Systems (CSCO) Dips More Than Broader Markets: What You Should Know
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Cisco Systems (CSCO - Free Report) closed the most recent trading day at $50.33, moving -1.55% from the previous trading session. This change lagged the S&P 500's 0.77% loss on the day. At the same time, the Dow lost 0.65%, and the tech-heavy Nasdaq lost 2.23%.
Prior to today's trading, shares of the seller of routers, switches, software and services had gained 4.26% over the past month. This has lagged the Computer and Technology sector's gain of 6.75% and the S&P 500's gain of 4.66% in that time.
Investors will be hoping for strength from Cisco Systems as it approaches its next earnings release. The company is expected to report EPS of $1.06, up 27.71% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.05 billion, up 14.84% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.81 per share and revenue of $56.84 billion. These totals would mark changes of +13.39% and +10.25%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Cisco Systems. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.1% lower. Cisco Systems is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Cisco Systems is holding a Forward P/E ratio of 13.44. For comparison, its industry has an average Forward P/E of 21.81, which means Cisco Systems is trading at a discount to the group.
Investors should also note that CSCO has a PEG ratio of 2.07 right now. 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 2.07 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 35, which puts it in the top 14% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow CSCO in the coming trading sessions, be sure to utilize Zacks.com.
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Cisco Systems (CSCO) Dips More Than Broader Markets: What You Should Know
Cisco Systems (CSCO - Free Report) closed the most recent trading day at $50.33, moving -1.55% from the previous trading session. This change lagged the S&P 500's 0.77% loss on the day. At the same time, the Dow lost 0.65%, and the tech-heavy Nasdaq lost 2.23%.
Prior to today's trading, shares of the seller of routers, switches, software and services had gained 4.26% over the past month. This has lagged the Computer and Technology sector's gain of 6.75% and the S&P 500's gain of 4.66% in that time.
Investors will be hoping for strength from Cisco Systems as it approaches its next earnings release. The company is expected to report EPS of $1.06, up 27.71% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.05 billion, up 14.84% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.81 per share and revenue of $56.84 billion. These totals would mark changes of +13.39% and +10.25%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Cisco Systems. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.1% lower. Cisco Systems is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Cisco Systems is holding a Forward P/E ratio of 13.44. For comparison, its industry has an average Forward P/E of 21.81, which means Cisco Systems is trading at a discount to the group.
Investors should also note that CSCO has a PEG ratio of 2.07 right now. 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 2.07 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 35, which puts it in the top 14% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow CSCO in the coming trading sessions, be sure to utilize Zacks.com.