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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 $53.22, moving -0.71% from the previous trading session. This change lagged the S&P 500's 0.02% loss on the day. Elsewhere, the Dow gained 0.23%, while the tech-heavy Nasdaq lost 0.12%.
Prior to today's trading, shares of the seller of routers, switches, software and services had gained 5.39% over the past month. This has outpaced the Computer and Technology sector's gain of 3.63% and the S&P 500's gain of 5.14% in that time.
Cisco Systems will be looking to display strength as it nears its next earnings release, which is expected to be August 16, 2023. In that report, analysts expect Cisco Systems to post earnings of $1.06 per share. This would mark year-over-year growth of 27.71%. Our most recent consensus estimate is calling for quarterly revenue of $15.05 billion, up 14.84% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.80 per share and revenue of $56.84 billion, which would represent changes of +13.1% and +10.25%, respectively, from the prior year.
It is also important to note the 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 #4 (Sell).
Valuation is also important, so investors should note that Cisco Systems has a Forward P/E ratio of 14.09 right now. For comparison, its industry has an average Forward P/E of 19.77, which means Cisco Systems is trading at a discount to the group.
We can also see that CSCO currently has a PEG ratio of 2.01. 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. CSCO's industry had an average PEG ratio of 1.63 as of yesterday's close.
The Computer - Networking industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 96, putting it in the top 39% 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.
You can find more information on all of these metrics, and much more, on 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 $53.22, moving -0.71% from the previous trading session. This change lagged the S&P 500's 0.02% loss on the day. Elsewhere, the Dow gained 0.23%, while the tech-heavy Nasdaq lost 0.12%.
Prior to today's trading, shares of the seller of routers, switches, software and services had gained 5.39% over the past month. This has outpaced the Computer and Technology sector's gain of 3.63% and the S&P 500's gain of 5.14% in that time.
Cisco Systems will be looking to display strength as it nears its next earnings release, which is expected to be August 16, 2023. In that report, analysts expect Cisco Systems to post earnings of $1.06 per share. This would mark year-over-year growth of 27.71%. Our most recent consensus estimate is calling for quarterly revenue of $15.05 billion, up 14.84% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.80 per share and revenue of $56.84 billion, which would represent changes of +13.1% and +10.25%, respectively, from the prior year.
It is also important to note the 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 #4 (Sell).
Valuation is also important, so investors should note that Cisco Systems has a Forward P/E ratio of 14.09 right now. For comparison, its industry has an average Forward P/E of 19.77, which means Cisco Systems is trading at a discount to the group.
We can also see that CSCO currently has a PEG ratio of 2.01. 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. CSCO's industry had an average PEG ratio of 1.63 as of yesterday's close.
The Computer - Networking industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 96, putting it in the top 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.