Cisco Systems (CSCO) closed at $47.32 in the latest trading session, marking a -0.71% move from the prior day. This move was narrower than the S&P 500’s daily loss of 1.45%. At the same time, the Dow lost 1.05%, and the tech-heavy Nasdaq lost 5.88%.
Heading into today, shares of the seller of routers, switches, software and services had lost 1.87% over the past month, outpacing the Computer and Technology sector’s loss of 2.53% and lagging the S&P 500’s loss of 1.68% in that time.
Investors will be hoping for strength from Cisco Systems as it approaches its next earnings release. In that report, analysts expect Cisco Systems to post earnings of $0.86 per share. This would mark year-over-year growth of 2.38%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.42 billion, up 5.51% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.54 per share and revenue of $54.44 billion. These totals would mark changes of +5.36% and +5.59%, respectively, from last year.
Any recent changes to analyst estimates for Cisco Systems should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.07% lower. Cisco Systems is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Cisco Systems currently has a Forward P/E ratio of 13.45. This represents a discount compared to its industry’s average Forward P/E of 18.38.
Also, we should mention that CSCO has a PEG ratio of 2.07. 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. CSCO’s industry had an average PEG ratio of 2.07 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 96, which puts it in the top 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Zacks Top 10 Stocks for 2023
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2023? From inception in 2012 through November, the
Zacks Top 10 Stocks
portfolio has tripled the market, gaining an impressive +884.5% versus the S&P 500’s +287.4%.
Now our Director of Research is combing through 4,000 companies covered by the Zacks Rank to handpick the best 10 tickers to buy and hold. Don’t miss your chance to get in on these stocks when they’re released on January 3.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
