The latest trading session saw Cisco Systems (CSCO) ending at $59.98, denoting a +0.22% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily loss of 0.04%. Meanwhile, the Dow experienced a rise of 0.07%, and the technology-dominated Nasdaq saw a decrease of 0.05%.
The seller of routers, switches, software and services's stock has climbed by 0.94% in the past month, falling short of the Computer and Technology sector's gain of 5.93% and the S&P 500's gain of 1.05%.
The investment community will be paying close attention to the earnings performance of Cisco Systems in its upcoming release. The company is forecasted to report an EPS of $0.91, showcasing a 4.6% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $13.86 billion, up 8.36% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.64 per share and revenue of $55.93 billion, indicating changes of -2.41% and +3.95%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Cisco Systems. These revisions help to show the ever-changing nature of near-term business trends. 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. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.05% higher. At present, Cisco Systems boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Cisco Systems is currently exchanging hands at a Forward P/E ratio of 16.43. This denotes a premium relative to the industry's average Forward P/E of 15.44.
It's also important to note that CSCO currently trades at a PEG ratio of 3.63. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer - Networking industry had an average PEG ratio of 1.38 as trading concluded yesterday.
The Computer - Networking industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 78, this industry ranks in the top 32% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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