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Cisco Systems (CSCO) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Cisco Systems (CSCO - Free Report) closed at $47.45, marking a -0.9% move from the previous day. This move lagged the S&P 500's daily gain of 0.49%. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq gained 0.43%.
Prior to today's trading, shares of the seller of routers, switches, software and services had gained 6.78% over the past month. This has outpaced the Computer and Technology sector's gain of 3.18% and the S&P 500's gain of 2.9% in that time.
Investors will be hoping for strength from CSCO as it approaches its next earnings release. On that day, CSCO is projected to report earnings of $0.76 per share, which would represent year-over-year growth of 4.11%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.98 billion, down 3.74% from the year-ago period.
CSCO's full-year Zacks Consensus Estimates are calling for earnings of $3.25 per share and revenue of $51.06 billion. These results would represent year-over-year changes of +4.84% and -1.63%, respectively.
Any recent changes to analyst estimates for CSCO should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. CSCO is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note CSCO's current valuation metrics, including its Forward P/E ratio of 14.72. Its industry sports an average Forward P/E of 15.02, so we one might conclude that CSCO is trading at a discount comparatively.
We can also see that CSCO currently has a PEG ratio of 2.51. 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. The Computer - Networking was holding an average PEG ratio of 2.51 at yesterday's closing price.
The Computer - Networking industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 196, which puts it in the bottom 24% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Cisco Systems (CSCO) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Cisco Systems (CSCO - Free Report) closed at $47.45, marking a -0.9% move from the previous day. This move lagged the S&P 500's daily gain of 0.49%. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq gained 0.43%.
Prior to today's trading, shares of the seller of routers, switches, software and services had gained 6.78% over the past month. This has outpaced the Computer and Technology sector's gain of 3.18% and the S&P 500's gain of 2.9% in that time.
Investors will be hoping for strength from CSCO as it approaches its next earnings release. On that day, CSCO is projected to report earnings of $0.76 per share, which would represent year-over-year growth of 4.11%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.98 billion, down 3.74% from the year-ago period.
CSCO's full-year Zacks Consensus Estimates are calling for earnings of $3.25 per share and revenue of $51.06 billion. These results would represent year-over-year changes of +4.84% and -1.63%, respectively.
Any recent changes to analyst estimates for CSCO should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. CSCO is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note CSCO's current valuation metrics, including its Forward P/E ratio of 14.72. Its industry sports an average Forward P/E of 15.02, so we one might conclude that CSCO is trading at a discount comparatively.
We can also see that CSCO currently has a PEG ratio of 2.51. 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. The Computer - Networking was holding an average PEG ratio of 2.51 at yesterday's closing price.
The Computer - Networking industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 196, which puts it in the bottom 24% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.