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

In the latest trading session, Cisco Systems (CSCO) closed at $42.88, marking a -0.42% move from the previous day. This change lagged the S&P 500's daily loss of 0.07%. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, added 0.02%.

Heading into today, shares of the seller of routers, switches, software and services had lost 4.42% over the past month, outpacing the Computer and Technology sector's loss of 7.26% and the S&P 500's loss of 7.99% in that time.

Wall Street will be looking for positivity from Cisco Systems as it approaches its next earnings report date. The company is expected to report EPS of $0.82, down 2.38% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $12.77 billion, down 2.75% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.35 per share and revenue of $51.22 billion. These totals would mark changes of +4.04% and +2.81%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Cisco Systems. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Cisco Systems currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Cisco Systems currently has a Forward P/E ratio of 12.84. This valuation marks a discount compared to its industry's average Forward P/E of 17.15.

It is also worth noting that CSCO currently has a PEG ratio of 1.98. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CSCO's industry had an average PEG ratio of 1.98 as of yesterday's close.

The Computer - Networking industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 223, putting it in the bottom 12% 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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