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Cisco Systems (CSCO) Laps the Stock Market: Here's Why
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In the latest trading session, Cisco Systems (CSCO - Free Report) closed at $47.99, marking a +0.23% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.08%. At the same time, the Dow lost 0.12%, and the tech-heavy Nasdaq gained 0.07%.
Coming into today, shares of the seller of routers, switches, software and services had gained 0.78% in the past month. In that same time, the Computer and Technology sector lost 4.62%, while the S&P 500 lost 0.21%.
Market participants will be closely following the financial results of Cisco Systems in its upcoming release. The company plans to announce its earnings on August 14, 2024. The company is forecasted to report an EPS of $0.85, showcasing a 25.44% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $13.51 billion, reflecting a 11.15% fall from the equivalent quarter last year.
CSCO's full-year Zacks Consensus Estimates are calling for earnings of $3.71 per share and revenue of $53.67 billion. These results would represent year-over-year changes of -4.63% and -5.84%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Cisco Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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. Cisco Systems is currently a Zacks Rank #4 (Sell).
With respect to valuation, Cisco Systems is currently being traded at a Forward P/E ratio of 12.92. This signifies a discount in comparison to the average Forward P/E of 13.28 for its industry.
We can also see that CSCO currently has a PEG ratio of 2.35. 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. As the market closed yesterday, the Computer - Networking industry was having an average PEG ratio of 1.07.
The Computer - Networking industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 200, this industry ranks in the bottom 21% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
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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Cisco Systems (CSCO) Laps the Stock Market: Here's Why
In the latest trading session, Cisco Systems (CSCO - Free Report) closed at $47.99, marking a +0.23% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.08%. At the same time, the Dow lost 0.12%, and the tech-heavy Nasdaq gained 0.07%.
Coming into today, shares of the seller of routers, switches, software and services had gained 0.78% in the past month. In that same time, the Computer and Technology sector lost 4.62%, while the S&P 500 lost 0.21%.
Market participants will be closely following the financial results of Cisco Systems in its upcoming release. The company plans to announce its earnings on August 14, 2024. The company is forecasted to report an EPS of $0.85, showcasing a 25.44% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $13.51 billion, reflecting a 11.15% fall from the equivalent quarter last year.
CSCO's full-year Zacks Consensus Estimates are calling for earnings of $3.71 per share and revenue of $53.67 billion. These results would represent year-over-year changes of -4.63% and -5.84%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Cisco Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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. Cisco Systems is currently a Zacks Rank #4 (Sell).
With respect to valuation, Cisco Systems is currently being traded at a Forward P/E ratio of 12.92. This signifies a discount in comparison to the average Forward P/E of 13.28 for its industry.
We can also see that CSCO currently has a PEG ratio of 2.35. 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. As the market closed yesterday, the Computer - Networking industry was having an average PEG ratio of 1.07.
The Computer - Networking industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 200, this industry ranks in the bottom 21% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.