Cisco Systems (CSCO – Free Report) ended the recent trading session at $59.20, demonstrating a +0.46% swing from the preceding day’s closing price. The stock’s performance was ahead of the S&P 500’s daily gain of 0.16%. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, lost 0.06%.
Heading into today, shares of the seller of routers, switches, software and services had gained 0.36% over the past month, outpacing the Computer and Technology sector’s loss of 0.17% and the S&P 500’s loss of 2.8% in that time.
Market participants will be closely following the financial results of Cisco Systems in its upcoming release. The company is expected to report EPS of $0.91, up 4.6% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.86 billion, up 8.36% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.65 per share and revenue of $55.93 billion, which would represent changes of -2.14% and +3.95%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Cisco Systems. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the company’s business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 a 0.15% increase. Currently, Cisco Systems is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Cisco Systems is currently trading at a Forward P/E ratio of 16.16. This represents no noticeable deviation compared to its industry’s average Forward P/E of 16.16.
It is also worth noting that CSCO currently has a PEG ratio of 3.57. 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. By the end of yesterday’s trading, the Computer – Networking industry had an average PEG ratio of 1.32.
The Computer – Networking industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 154, placing it within the bottom 39% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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