Cisco Systems (CSCO) closed the most recent trading day at $53.57, moving +0.43% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.23%. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq lost 0.09%.
Coming into today, shares of the seller of routers, switches, software and services had lost 3.44% in the past month. In that same time, the Computer and Technology sector lost 1.69%, while the S&P 500 lost 1.43%.
Investors will be hoping for strength from Cisco Systems as it approaches its next earnings release. On that day, Cisco Systems is projected to report earnings of $1.03 per share, which would represent year-over-year growth of 19.77%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.61 billion, up 7.18% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.05 per share and revenue of $57.74 billion. These totals would mark changes of +4.11% and +1.3%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Cisco Systems. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.02% lower. Cisco Systems currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Cisco Systems is holding a Forward P/E ratio of 13.17. This represents a discount compared to its industry's average Forward P/E of 14.53.
Investors should also note that CSCO has a PEG ratio of 2.09 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. Computer - Networking stocks are, on average, holding a PEG ratio of 0.88 based on yesterday's closing prices.
The Computer - Networking industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 40, putting it in the top 16% 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.
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