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Cisco Systems (CSCO) Stock Moves -0.12%: What You Should Know

Cisco Systems (CSCO) closed the most recent trading day at $40.37, moving -0.12% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.84%. Meanwhile, the Dow lost 0.47%, and the Nasdaq, a tech-heavy index, lost 1.27%.

Coming into today, shares of the seller of routers, switches, software and services had lost 3.46% in the past month. In that same time, the Computer and Technology sector gained 0.69%, while the S&P 500 gained 0.6%.

Investors will be hoping for strength from CSCO as it approaches its next earnings release. The company is expected to report EPS of $0.71, down 15.48% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.88 billion, down 9.74% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.11 per share and revenue of $48.25 billion, which would represent changes of -3.12% and -2.14%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for CSCO. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.39% lower. CSCO is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, CSCO is holding a Forward P/E ratio of 13. Its industry sports an average Forward P/E of 14.49, so we one might conclude that CSCO is trading at a discount comparatively.

Investors should also note that CSCO has a PEG ratio of 2.08 right now. 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 was holding an average PEG ratio of 2.77 at yesterday's closing price.

The Computer - Networking industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 125, which puts it in the top 50% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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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.

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