Cisco Systems (CSCO) closed the most recent trading day at $43.84, moving -0.93% from the previous trading session. This change lagged the S&P 500's 0.66% loss on the day. Meanwhile, the Dow lost 0.99%, and the Nasdaq, a tech-heavy index, lost 1.63%.
Prior to today's trading, shares of the seller of routers, switches, software and services had lost 8.44% over the past month. This has was narrower than the Computer and Technology sector's loss of 10.48% and lagged the S&P 500's loss of 8.1% in that time.
Wall Street will be looking for positivity from CSCO as it approaches its next earnings report date. This is expected to be November 14, 2018. In that report, analysts expect CSCO to post earnings of $0.72 per share. This would mark year-over-year growth of 18.03%. Meanwhile, our latest consensus estimate is calling for revenue of $12.87 billion, up 6.07% from the prior-year quarter.
CSCO's full-year Zacks Consensus Estimates are calling for earnings of $2.97 per share and revenue of $51.48 billion. These results would represent year-over-year changes of +14.23% and +4.35%, respectively.
It is also important to note the recent changes to analyst estimates for CSCO. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 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. Within the past 30 days, our consensus EPS projection remained stagnant. CSCO is currently a Zacks Rank #3 (Hold).
In terms of valuation, CSCO is currently trading at a Forward P/E ratio of 14.89. This valuation marks a discount compared to its industry's average Forward P/E of 18.33.
Investors should also note that CSCO has a PEG ratio of 2.35 right now. 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 2.09 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 193, putting it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.