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In the latest trading session, Cisco Systems (CSCO) closed at $68.68, marking a +1.42% move from the previous day. The stock’s performance was ahead of the S&P 500’s daily gain of 0.48%. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq added 0.94%.
The stock of seller of routers, switches, software and services has risen by 0.91% in the past month, lagging the Computer and Technology sector’s gain of 5.46% and the S&P 500’s gain of 2.46%.
Analysts and investors alike will be keeping a close eye on the performance of Cisco Systems in its upcoming earnings disclosure. The company’s earnings per share (EPS) are projected to be $0.98, reflecting a 7.69% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $14.77 billion, up 6.69% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.04 per share and a revenue of $59.58 billion, signifying shifts of +6.04% and +5.17%, respectively, from the last year.
It’s also important for investors to be aware of any recent modifications 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 business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 has moved 0.77% higher. Cisco Systems currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Cisco Systems is currently trading at a Forward P/E ratio of 16.75. Its industry sports an average Forward P/E of 17.26, so one might conclude that Cisco Systems is trading at a discount comparatively.
It’s also important to note that CSCO currently trades at a PEG ratio of 2.34. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. The Computer – Networking industry currently had an average PEG ratio of 1.21 as of yesterday’s close.
The Computer – Networking industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 75, positioning it in the top 31% of all 250+ industries.
