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Why the Market Dipped But Cisco Systems (CSCO) Gained Today
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Cisco Systems (CSCO - Free Report) closed the latest trading day at $50.52, indicating a +0.08% change from the previous session's end. The stock outperformed the S&P 500, which registered a daily loss of 0.28%. Elsewhere, the Dow lost 0.06%, while the tech-heavy Nasdaq lost 0.56%.
Heading into today, shares of the seller of routers, switches, software and services had gained 4.34% over the past month, lagging the Computer and Technology sector's gain of 4.68% and the S&P 500's gain of 5.24% in that time.
The investment community will be closely monitoring the performance of Cisco Systems in its forthcoming earnings report. The company is expected to report EPS of $0.84, down 4.55% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $12.73 billion, indicating a 6.34% decrease compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.89 per share and a revenue of $54.68 billion, indicating changes of 0% and -4.06%, respectively, from the former year.
Any recent changes to analyst estimates for Cisco Systems should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. 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. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 has moved 0.03% lower within the past month. Cisco Systems presently features a Zacks Rank of #4 (Sell).
Looking at valuation, Cisco Systems is presently trading at a Forward P/E ratio of 12.98. This represents a premium compared to its industry's average Forward P/E of 12.82.
It is also worth noting that CSCO currently has a PEG ratio of 2.09. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Computer - Networking industry was having an average PEG ratio of 0.75.
The Computer - Networking industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 235, which puts it in the bottom 7% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Why the Market Dipped But Cisco Systems (CSCO) Gained Today
Cisco Systems (CSCO - Free Report) closed the latest trading day at $50.52, indicating a +0.08% change from the previous session's end. The stock outperformed the S&P 500, which registered a daily loss of 0.28%. Elsewhere, the Dow lost 0.06%, while the tech-heavy Nasdaq lost 0.56%.
Heading into today, shares of the seller of routers, switches, software and services had gained 4.34% over the past month, lagging the Computer and Technology sector's gain of 4.68% and the S&P 500's gain of 5.24% in that time.
The investment community will be closely monitoring the performance of Cisco Systems in its forthcoming earnings report. The company is expected to report EPS of $0.84, down 4.55% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $12.73 billion, indicating a 6.34% decrease compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.89 per share and a revenue of $54.68 billion, indicating changes of 0% and -4.06%, respectively, from the former year.
Any recent changes to analyst estimates for Cisco Systems should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. 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. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 has moved 0.03% lower within the past month. Cisco Systems presently features a Zacks Rank of #4 (Sell).
Looking at valuation, Cisco Systems is presently trading at a Forward P/E ratio of 12.98. This represents a premium compared to its industry's average Forward P/E of 12.82.
It is also worth noting that CSCO currently has a PEG ratio of 2.09. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Computer - Networking industry was having an average PEG ratio of 0.75.
The Computer - Networking industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 235, which puts it in the bottom 7% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.