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Cisco Systems (CSCO) Gains But Lags Market: What You Should Know
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Cisco Systems (CSCO - Free Report) closed at $55.67 in the latest trading session, marking a +0.11% move from the prior day. This move lagged the S&P 500's daily gain of 1.89%. Elsewhere, the Dow gained 1.17%, while the tech-heavy Nasdaq added 0.73%.
Heading into today, shares of the seller of routers, switches, software and services had lost 12.25% over the past month, outpacing the Computer and Technology sector's loss of 12.51% and lagging the S&P 500's loss of 7.36% in that time.
Cisco Systems will be looking to display strength as it nears its next earnings release, which is expected to be February 16, 2022. On that day, Cisco Systems is projected to report earnings of $0.81 per share, which would represent year-over-year growth of 2.53%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.65 billion, up 5.79% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.42 per share and revenue of $52.66 billion, which would represent changes of +6.21% and +5.7%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Cisco Systems. These revisions help to show the ever-changing nature of near-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. Over the past month, the Zacks Consensus EPS estimate has moved 0.15% higher. Cisco Systems currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Cisco Systems has a Forward P/E ratio of 16.25 right now. This valuation marks a discount compared to its industry's average Forward P/E of 16.45.
It is also worth noting that CSCO currently has a PEG ratio of 2.5. 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. The Computer - Networking industry currently had an average PEG ratio of 2.5 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 42, which puts it in the top 17% 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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Cisco Systems (CSCO) Gains But Lags Market: What You Should Know
Cisco Systems (CSCO - Free Report) closed at $55.67 in the latest trading session, marking a +0.11% move from the prior day. This move lagged the S&P 500's daily gain of 1.89%. Elsewhere, the Dow gained 1.17%, while the tech-heavy Nasdaq added 0.73%.
Heading into today, shares of the seller of routers, switches, software and services had lost 12.25% over the past month, outpacing the Computer and Technology sector's loss of 12.51% and lagging the S&P 500's loss of 7.36% in that time.
Cisco Systems will be looking to display strength as it nears its next earnings release, which is expected to be February 16, 2022. On that day, Cisco Systems is projected to report earnings of $0.81 per share, which would represent year-over-year growth of 2.53%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.65 billion, up 5.79% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.42 per share and revenue of $52.66 billion, which would represent changes of +6.21% and +5.7%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Cisco Systems. These revisions help to show the ever-changing nature of near-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. Over the past month, the Zacks Consensus EPS estimate has moved 0.15% higher. Cisco Systems currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Cisco Systems has a Forward P/E ratio of 16.25 right now. This valuation marks a discount compared to its industry's average Forward P/E of 16.45.
It is also worth noting that CSCO currently has a PEG ratio of 2.5. 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. The Computer - Networking industry currently had an average PEG ratio of 2.5 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 42, which puts it in the top 17% 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.