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Cisco Systems (CSCO) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Cisco Systems (CSCO - Free Report) closed at $51.53, marking a +1.56% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.85%. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq gained 5.61%.
Coming into today, shares of the seller of routers, switches, software and services had lost 0.43% in the past month. In that same time, the Computer and Technology sector gained 1.89%, while the S&P 500 gained 3.18%.
Wall Street will be looking for positivity from Cisco Systems as it approaches its next earnings report date. This is expected to be August 16, 2023. The company is expected to report EPS of $1.06, up 27.71% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $15.05 billion, up 14.84% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.81 per share and revenue of $56.84 billion, which would represent changes of +13.39% and +10.25%, respectively, from the prior year.
Any recent changes to analyst estimates for Cisco Systems should also be noted by investors. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Cisco Systems is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Cisco Systems is holding a Forward P/E ratio of 13.34. For comparison, its industry has an average Forward P/E of 19.46, which means Cisco Systems is trading at a discount to the group.
Also, we should mention that CSCO has a PEG ratio of 2.05. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Networking was holding an average PEG ratio of 2.05 at yesterday's closing price.
The Computer - Networking industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 38, which puts it in the top 16% 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.
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
In the latest trading session, Cisco Systems (CSCO - Free Report) closed at $51.53, marking a +1.56% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.85%. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq gained 5.61%.
Coming into today, shares of the seller of routers, switches, software and services had lost 0.43% in the past month. In that same time, the Computer and Technology sector gained 1.89%, while the S&P 500 gained 3.18%.
Wall Street will be looking for positivity from Cisco Systems as it approaches its next earnings report date. This is expected to be August 16, 2023. The company is expected to report EPS of $1.06, up 27.71% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $15.05 billion, up 14.84% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.81 per share and revenue of $56.84 billion, which would represent changes of +13.39% and +10.25%, respectively, from the prior year.
Any recent changes to analyst estimates for Cisco Systems should also be noted by investors. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Cisco Systems is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Cisco Systems is holding a Forward P/E ratio of 13.34. For comparison, its industry has an average Forward P/E of 19.46, which means Cisco Systems is trading at a discount to the group.
Also, we should mention that CSCO has a PEG ratio of 2.05. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Networking was holding an average PEG ratio of 2.05 at yesterday's closing price.
The Computer - Networking industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 38, which puts it in the top 16% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.