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Cisco Systems (CSCO) Outperforms Broader Market: What You Need to Know
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Cisco Systems (CSCO - Free Report) ended the recent trading session at $68.49, demonstrating a +2.06% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 1.47%. Meanwhile, the Dow gained 1.34%, and the Nasdaq, a tech-heavy index, added 1.95%.
Coming into today, shares of the seller of routers, switches, software and services had lost 3.26% in the past month. In that same time, the Computer and Technology sector gained 3.41%, while the S&P 500 gained 0.64%.
Investors will be eagerly watching for the performance of Cisco Systems in its upcoming earnings disclosure. In that report, analysts expect Cisco Systems to post earnings of $0.97 per share. This would mark year-over-year growth of 11.49%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.61 billion, up 7.12% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $3.79 per share and a revenue of $56.59 billion, demonstrating changes of +1.61% and 0%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Cisco Systems. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Cisco Systems holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Cisco Systems has a Forward P/E ratio of 16.72 right now. This denotes a premium relative to the industry average Forward P/E of 14.84.
It's also important to note that CSCO currently trades at a PEG ratio of 3.06. 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. As the market closed yesterday, the Computer - Networking industry was having an average PEG ratio of 1.02.
The Computer - Networking industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 96, this industry ranks in the top 39% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Cisco Systems (CSCO) Outperforms Broader Market: What You Need to Know
Cisco Systems (CSCO - Free Report) ended the recent trading session at $68.49, demonstrating a +2.06% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 1.47%. Meanwhile, the Dow gained 1.34%, and the Nasdaq, a tech-heavy index, added 1.95%.
Coming into today, shares of the seller of routers, switches, software and services had lost 3.26% in the past month. In that same time, the Computer and Technology sector gained 3.41%, while the S&P 500 gained 0.64%.
Investors will be eagerly watching for the performance of Cisco Systems in its upcoming earnings disclosure. In that report, analysts expect Cisco Systems to post earnings of $0.97 per share. This would mark year-over-year growth of 11.49%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.61 billion, up 7.12% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $3.79 per share and a revenue of $56.59 billion, demonstrating changes of +1.61% and 0%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Cisco Systems. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Cisco Systems holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Cisco Systems has a Forward P/E ratio of 16.72 right now. This denotes a premium relative to the industry average Forward P/E of 14.84.
It's also important to note that CSCO currently trades at a PEG ratio of 3.06. 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. As the market closed yesterday, the Computer - Networking industry was having an average PEG ratio of 1.02.
The Computer - Networking industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 96, this industry ranks in the top 39% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.