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Cisco Systems (CSCO) Stock Sinks As Market Gains: What You Should Know

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Cisco Systems (CSCO - Free Report) closed at $45.83 in the latest trading session, marking a -0.74% move from the prior day. This change lagged the S&P 500's 0.06% gain on the day. Meanwhile, the Dow lost 0.15%, and the Nasdaq, a tech-heavy index, added 0.33%.

Wall Street will be looking for positivity from CSCO as it approaches its next earnings report date. In that report, analysts expect CSCO to post earnings of $0.74 per share. This would mark a year-over-year decline of 10.84%. Our most recent consensus estimate is calling for quarterly revenue of $12.09 billion, down 9.94% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.15 per share and revenue of $49.24 billion, which would represent changes of +1.61% and -5.13%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for CSCO. These recent revisions tend to reflect the evolving nature of short-term business trends. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. CSCO is currently a Zacks Rank #3 (Hold).

Investors should also note CSCO's current valuation metrics, including its Forward P/E ratio of 14.68. For comparison, its industry has an average Forward P/E of 87.5, which means CSCO is trading at a discount to the group.

Also, we should mention that CSCO has a PEG ratio of 2.72. 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 industry currently had an average PEG ratio of 3.05 as of yesterday's close.

The Computer - Networking industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% of all 250+ industries.

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.

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


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