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

Cisco Systems (CSCO) closed the most recent trading day at $56.11, moving -1.39% from the previous trading session. This change lagged the S&P 500's daily loss of 1.22%. Meanwhile, the Dow lost 0.19%, and the Nasdaq, a tech-heavy index, lost 0.54%.

Heading into today, shares of the seller of routers, switches, software and services had lost 10.28% over the past month, outpacing the Computer and Technology sector's loss of 11.78% and lagging the S&P 500's loss of 6.58% in that time.

Wall Street will be looking for positivity from Cisco Systems as it approaches its next earnings report date. This is expected to be February 16, 2022. The company is expected to report EPS of $0.81, up 2.53% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.65 billion, up 5.79% from the year-ago period.

CSCO's full-year Zacks Consensus Estimates are calling for earnings of $3.42 per share and revenue of $52.66 billion. These results would represent year-over-year changes of +6.21% and +5.7%, respectively.

Any recent changes to analyst estimates for Cisco Systems should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. Cisco Systems is currently a Zacks Rank #2 (Buy).

Valuation is also important, so investors should note that Cisco Systems has a Forward P/E ratio of 16.63 right now. Its industry sports an average Forward P/E of 17.05, so we one might conclude that Cisco Systems is trading at a discount comparatively.

Also, we should mention that CSCO has a PEG ratio of 2.56. 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 2.56 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 60, which puts it in the top 24% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow CSCO in the coming trading sessions, be sure to utilize Zacks.com.

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
 
Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research