Cisco Systems (CSCO) Stock Moves 1.52%: What You Should Know

Cisco Systems (CSCO) closed the latest trading day at $48, indicating a +1.52% change from the previous session's end. Elsewhere, the Dow gained 0.44%, while the tech-heavy Nasdaq lost 0.18%.

The the stock of seller of routers, switches, software and services has fallen by 5.46% in the past month, lagging the Computer and Technology sector's gain of 0.83% and the S&P 500's loss of 0.22%.

Market participants will be closely following the financial results of Cisco Systems in its upcoming release. The company plans to announce its earnings on May 15, 2024. The company's upcoming EPS is projected at $0.83, signifying a 17% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $12.47 billion, reflecting a 14.4% fall from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.68 per share and revenue of $53.04 billion, which would represent changes of -5.4% and -6.94%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cisco Systems. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.79% downward. Cisco Systems presently features a Zacks Rank of #4 (Sell).

In terms of valuation, Cisco Systems is presently being traded at a Forward P/E ratio of 12.86. For comparison, its industry has an average Forward P/E of 12.86, which means Cisco Systems is trading at no noticeable deviation to the group.

It is also worth noting that CSCO currently has a PEG ratio of 2.32. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Computer - Networking industry stood at 1.21 at the close of the market yesterday.

The Computer - Networking industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 155, finds itself in the bottom 39% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report

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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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