In the latest trading session, Cisco Systems (CSCO) closed at $37.85, marking a -1.12% move from the previous day. This move lagged the S&P 500's daily gain of 0.3%. At the same time, the Dow added 0.2%, and the tech-heavy Nasdaq gained 0.37%.
Prior to today's trading, shares of the seller of routers, switches, software and services had lost 9.4% over the past month. This has lagged the Computer and Technology sector's loss of 5.52% and the S&P 500's loss of 5.02% in that time.
CSCO will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.71, down 15.48% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.88 billion, down 9.74% from the year-ago period.
CSCO's full-year Zacks Consensus Estimates are calling for earnings of $3.11 per share and revenue of $48.25 billion. These results would represent year-over-year changes of -3.12% and -2.14%, respectively.
Investors might also notice 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. CSCO is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, CSCO is holding a Forward P/E ratio of 12.31. For comparison, its industry has an average Forward P/E of 13.9, which means CSCO is trading at a discount to the group.
We can also see that CSCO currently has a PEG ratio of 1.97. 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 Computer - Networking industry currently had an average PEG ratio of 2.56 as of yesterday's close.
The Computer - Networking industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 108, which puts it in the top 43% 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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