Cisco Systems (CSCO) closed the latest trading day at $59.33, indicating a +0.97% change from the previous session's end. The stock outperformed the S&P 500, which registered a daily gain of 0.12%. On the other hand, the Dow registered a gain of 0.52%, and the technology-centric Nasdaq decreased by 0.23%.
The seller of routers, switches, software and services's shares have seen an increase of 0.7% over the last month, surpassing the Computer and Technology sector's loss of 3.73% and the S&P 500's loss of 3.45%.
The investment community will be paying close attention to the earnings performance of Cisco Systems in its upcoming release. In that report, analysts expect Cisco Systems to post earnings of $0.91 per share. This would mark year-over-year growth of 4.6%. In the meantime, our current consensus estimate forecasts the revenue to be $13.86 billion, indicating an 8.36% growth compared to the corresponding quarter of the prior year.
CSCO's full-year Zacks Consensus Estimates are calling for earnings of $3.65 per share and revenue of $55.93 billion. These results would represent year-over-year changes of -2.14% and +3.95%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Cisco Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.15% higher within the past month. As of now, Cisco Systems holds a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Cisco Systems has a Forward P/E ratio of 16.11 right now. This denotes a premium relative to the industry's average Forward P/E of 15.09.
Investors should also note that CSCO has a PEG ratio of 3.56 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Computer - Networking industry held an average PEG ratio of 1.3.
The Computer - Networking industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 155, placing it within the bottom 39% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Free: 5 Stocks to Buy As Infrastructure Spending Soars
Trillions of dollars in Federal funds have been earmarked to repair and upgrade America’s infrastructure. In addition to roads and bridges, this flood of cash will pour into AI data centers, renewable energy sources and more.
In, you’ll discover 5 surprising stocks positioned to profit the most from the spending spree that’s just getting started in this space.
Download How to Profit from the Trillion-Dollar Infrastructure Boom absolutely free today.Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
