In the latest trading session, Cisco Systems (CSCO) closed at $45.02, marking a +0.02% move from the previous day. This change outpaced the S&P 500's 0.12% loss on the day. Elsewhere, the Dow gained 0.09%, while the tech-heavy Nasdaq added 0.4%.
Coming into today, shares of the seller of routers, switches, software and services had gained 3.73% in the past month. In that same time, the Computer and Technology sector gained 10.34%, while the S&P 500 gained 8.25%.
Cisco Systems will be looking to display strength as it nears its next earnings release, which is expected to be August 17, 2022. On that day, Cisco Systems is projected to report earnings of $0.82 per share, which would represent a year-over-year decline of 2.38%. Our most recent consensus estimate is calling for quarterly revenue of $12.75 billion, down 2.85% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Cisco Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.89% lower. Cisco Systems is currently a Zacks Rank #4 (Sell).
Looking at its valuation, Cisco Systems is holding a Forward P/E ratio of 12.75. For comparison, its industry has an average Forward P/E of 16.31, which means Cisco Systems is trading at a discount to the group.
Also, we should mention that CSCO has a PEG ratio of 1.96. 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 1.96 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 102, which puts it in the top 41% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report
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