Cisco Systems (CSCO) Outpaces Stock Market Gains: What You Should Know
Cisco Systems (CSCO) closed at $49.61 in the latest trading session, marking a +0.99% move from the prior day. This move outpaced the S&P 500's daily gain of 0.62%. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, added 1.05%.
Heading into today, shares of the seller of routers, switches, software and services had gained 4.98% over the past month, outpacing the Computer and Technology sector's gain of 3.77% and the S&P 500's gain of 3.85% in that time.
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 $0.81 per share. This would mark year-over-year growth of 8%. Our most recent consensus estimate is calling for quarterly revenue of $13.07 billion, down 0.02% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.36 per share and revenue of $52.90 billion. These totals would mark changes of +8.39% and +1.92%, respectively, from last year.
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 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.44% lower. CSCO is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, CSCO is currently trading at a Forward P/E ratio of 14.62. This represents a discount compared to its industry's average Forward P/E of 15.43.
It is also worth noting that CSCO currently has a PEG ratio of 2.15. 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 2.5 based on yesterday's closing prices.
The Computer - Networking industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 30, which puts it in the top 12% 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.
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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.