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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 $51.21 in the latest trading session, marking a +0.67% move from the prior day. This change outpaced the S&P 500's 0.45% gain on the day. Elsewhere, the Dow gained 0.8%, while the tech-heavy Nasdaq added 1.99%.
Coming into today, shares of the seller of routers, switches, software and services had gained 2.42% in the past month. In that same time, the Computer and Technology sector gained 3.21%, while the S&P 500 gained 4.25%.
Wall Street will be looking for positivity from Cisco Systems as it approaches its next earnings report date. The company is expected to report EPS of $1.06, up 27.71% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue 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.
Any recent changes to analyst estimates for Cisco Systems should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.1% lower. 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 13.37. This represents a discount compared to its industry's average Forward P/E of 21.69.
Also, we should mention that CSCO has a PEG ratio of 2.06. 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. Computer - Networking stocks are, on average, holding a PEG ratio of 2.06 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 46, which puts it in the top 19% 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.
To follow CSCO in the coming trading sessions, be sure to utilize Zacks.com.
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Cisco Systems (CSCO) Outpaces Stock Market Gains: What You Should Know
Cisco Systems (CSCO - Free Report) closed at $51.21 in the latest trading session, marking a +0.67% move from the prior day. This change outpaced the S&P 500's 0.45% gain on the day. Elsewhere, the Dow gained 0.8%, while the tech-heavy Nasdaq added 1.99%.
Coming into today, shares of the seller of routers, switches, software and services had gained 2.42% in the past month. In that same time, the Computer and Technology sector gained 3.21%, while the S&P 500 gained 4.25%.
Wall Street will be looking for positivity from Cisco Systems as it approaches its next earnings report date. The company is expected to report EPS of $1.06, up 27.71% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue 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.
Any recent changes to analyst estimates for Cisco Systems should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.1% lower. 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 13.37. This represents a discount compared to its industry's average Forward P/E of 21.69.
Also, we should mention that CSCO has a PEG ratio of 2.06. 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. Computer - Networking stocks are, on average, holding a PEG ratio of 2.06 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 46, which puts it in the top 19% 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.
To follow CSCO in the coming trading sessions, be sure to utilize Zacks.com.