In the latest trading session, Cisco Systems (CSCO) closed at $47.07, marking a -0.97% move from the previous day. This change was narrower than the S&P 500’s daily loss of 1.2%. At the same time, the Dow lost 1.1%, and the tech-heavy Nasdaq lost 2.86%.
Coming into today, shares of the seller of routers, switches, software and services had lost 1.55% in the past month. In that same time, the Computer and Technology sector lost 7.42%, while the S&P 500 lost 4.77%.
Cisco Systems will be looking to display strength as it nears 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.
CSCO’s full-year Zacks Consensus Estimates are calling for earnings of $3.54 per share and revenue of $54.44 billion. These results would represent year-over-year changes of +5.36% and +5.59%, respectively.
Any recent changes to analyst estimates for Cisco Systems should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 has moved 0.07% lower within the past month. Cisco Systems is currently a Zacks Rank #3 (Hold).
Digging into valuation, Cisco Systems currently has a Forward P/E ratio of 13.41. For comparison, its industry has an average Forward P/E of 18.5, which means Cisco Systems is trading at a discount to the group.
We can also see that CSCO currently has a PEG ratio of 2.06. 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. The Computer – Networking was holding an average PEG ratio of 2.06 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 54, which puts it in the top 22% 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.
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