Cisco Systems (CSCO) Dips More Than Broader Markets: What You Should Know

In the latest trading session, Cisco Systems (CSCO) closed at $55.47, marking a -0.22% move from the previous day. This move lagged the S&P 500's daily loss of 0.09%.

Heading into today, shares of the seller of routers, switches, software and services had gained 3.44% over the past month, outpacing the Computer and Technology sector's gain of 2.73% and the S&P 500's gain of 2.28% in that time.

Investors will be hoping for strength from CSCO as it approaches its next earnings release, which is expected to be August 18, 2021. The company is expected to report EPS of $0.83, up 3.75% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $13.04 billion, up 7.28% from the year-ago period.

It is also important to note the recent changes to analyst estimates for CSCO. 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 company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection remained stagnant. CSCO is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that CSCO has a Forward P/E ratio of 16.41 right now. This represents a premium compared to its industry's average Forward P/E of 16.07.

Investors should also note that CSCO has a PEG ratio of 2.63 right now. 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. CSCO's industry had an average PEG ratio of 3.22 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 246, which puts it in the bottom 4% 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.

Time to Invest in Legal Marijuana

If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.

After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%.

You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.