Cisco Systems (CSCO) closed the most recent trading day at $52.09, moving +0.35% from the previous trading session. The stock lagged the S&P 500’s daily gain of 0.77%.
Heading into today, shares of the seller of routers, switches, software and services had gained 7.21% over the past month, lagging the Computer and Technology sector’s gain of 10.54% and the S&P 500’s gain of 7.34% in that time.
CSCO will be looking to display strength as it nears its next earnings release, which is expected to be May 19, 2021. On that day, CSCO is projected to report earnings of $0.82 per share, which would represent year-over-year growth of 3.8%. Our most recent consensus estimate is calling for quarterly revenue of $12.58 billion, up 4.96% from the year-ago period.
CSCO’s full-year Zacks Consensus Estimates are calling for earnings of $3.22 per share and revenue of $49.17 billion. These results would represent year-over-year changes of +0.31% and -0.26%, respectively.
Investors should also note any recent changes to analyst estimates for CSCO. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 past month, the Zacks Consensus EPS estimate has moved 0.05% higher. CSCO is currently a Zacks Rank #3 (Hold).
In terms of valuation, CSCO is currently trading at a Forward P/E ratio of 16.08. Its industry sports an average Forward P/E of 17.29, so we one might conclude that CSCO is trading at a discount comparatively.
Meanwhile, CSCO’s PEG ratio is currently 2.57. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. Computer – Networking stocks are, on average, holding a PEG ratio of 2.73 based on yesterday’s closing prices.
The Computer – Networking industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 239, putting it in the bottom 6% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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