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Here's Why Cisco Systems (CSCO) Gained But Lagged the Market Today
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Cisco Systems (CSCO - Free Report) closed the latest trading day at $45.16, indicating a +0.94% change from the previous session's end. This move lagged the S&P 500's daily gain of 1.04%. Meanwhile, the Dow gained 0.76%, and the Nasdaq, a tech-heavy index, added 1.03%.
The the stock of seller of routers, switches, software and services has fallen by 2.87% in the past month, leading the Computer and Technology sector's loss of 13.91% and the S&P 500's loss of 6.74%.
The investment community will be paying close attention to the earnings performance of Cisco Systems in its upcoming release. The company is slated to reveal its earnings on August 14, 2024. The company is expected to report EPS of $0.85, down 25.44% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $13.51 billion, indicating a 11.15% decline compared to the corresponding quarter of the prior year.
Investors might also notice recent changes to analyst estimates for Cisco Systems. These revisions help to show the ever-changing nature of near-term business trends. 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. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Cisco Systems presently features a Zacks Rank of #2 (Buy).
Looking at its valuation, Cisco Systems is holding a Forward P/E ratio of 12.65. This expresses no noticeable deviation compared to the average Forward P/E of 12.65 of its industry.
Meanwhile, CSCO's PEG ratio is currently 2.3. 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. Computer - Networking stocks are, on average, holding a PEG ratio of 0.97 based on yesterday's closing prices.
The Computer - Networking industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 88, this industry ranks in the top 35% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Here's Why Cisco Systems (CSCO) Gained But Lagged the Market Today
Cisco Systems (CSCO - Free Report) closed the latest trading day at $45.16, indicating a +0.94% change from the previous session's end. This move lagged the S&P 500's daily gain of 1.04%. Meanwhile, the Dow gained 0.76%, and the Nasdaq, a tech-heavy index, added 1.03%.
The the stock of seller of routers, switches, software and services has fallen by 2.87% in the past month, leading the Computer and Technology sector's loss of 13.91% and the S&P 500's loss of 6.74%.
The investment community will be paying close attention to the earnings performance of Cisco Systems in its upcoming release. The company is slated to reveal its earnings on August 14, 2024. The company is expected to report EPS of $0.85, down 25.44% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $13.51 billion, indicating a 11.15% decline compared to the corresponding quarter of the prior year.
Investors might also notice recent changes to analyst estimates for Cisco Systems. These revisions help to show the ever-changing nature of near-term business trends. 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. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Cisco Systems presently features a Zacks Rank of #2 (Buy).
Looking at its valuation, Cisco Systems is holding a Forward P/E ratio of 12.65. This expresses no noticeable deviation compared to the average Forward P/E of 12.65 of its industry.
Meanwhile, CSCO's PEG ratio is currently 2.3. 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. Computer - Networking stocks are, on average, holding a PEG ratio of 0.97 based on yesterday's closing prices.
The Computer - Networking industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 88, this industry ranks in the top 35% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.