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Cisco Systems (CSCO) Stock Moves -0.32%: What You Should Know

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In the latest trading session, Cisco Systems (CSCO - Free Report) closed at $53.77, marking a -0.32% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 1.34%. Elsewhere, the Dow lost 0.98%, while the tech-heavy Nasdaq lost 1.62%.

Prior to today's trading, shares of the seller of routers, switches, software and services had lost 3.4% over the past month. This has lagged the Computer and Technology sector's loss of 0.34% and the S&P 500's loss of 1.57% in that time.

The upcoming earnings release of Cisco Systems will be of great interest to investors. The company's earnings report is expected on November 15, 2023. The company's upcoming EPS is projected at $1.03, signifying a 19.77% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $14.61 billion, indicating a 7.18% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $4.05 per share and revenue of $57.74 billion, which would represent changes of +4.11% and +1.3%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Cisco Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Cisco Systems boasts a Zacks Rank of #3 (Hold).

With respect to valuation, Cisco Systems is currently being traded at a Forward P/E ratio of 13.32. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 13.32.

Also, we should mention that CSCO has a PEG ratio of 2.11. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computer - Networking industry currently had an average PEG ratio of 0.87 as of yesterday's close.

The Computer - Networking industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 102, positioning it in the top 41% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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