Back to top

Image: Bigstock

Cisco Systems (CSCO) Stock Moves -0.19%: What You Should Know

Read MoreHide Full Article

In the latest trading session, Cisco Systems (CSCO - Free Report) closed at $53.13, marking a -0.19% move from the previous day. This change was narrower than the S&P 500's 0.46% loss on the day. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq lost 0.63%.

Prior to today's trading, shares of the seller of routers, switches, software and services had gained 4.01% over the past month. This has outpaced the Computer and Technology sector's gain of 2.74% and the S&P 500's gain of 1.08% in that time.

Investors will be hoping for strength from CSCO as it approaches its next earnings release. The company is expected to report EPS of $0.77, up 16.67% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.89 billion, up 3.4% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.06 per share and revenue of $51.67 billion. These totals would mark changes of +17.69% and +4.73%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for CSCO. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.09% higher within the past month. CSCO is currently sporting a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that CSCO has a Forward P/E ratio of 17.41 right now. This represents a no noticeable deviation compared to its industry's average Forward P/E of 17.41.

Meanwhile, CSCO's PEG ratio is currently 2.49. 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. The Computer - Networking was holding an average PEG ratio of 2.13 at yesterday's closing price.

The Computer - Networking industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 108, putting it in the top 43% 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.

To follow CSCO in the coming trading sessions, be sure to utilize Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Cisco Systems, Inc. (CSCO) - free report >>

Published in