Yahoo Finance Cisco Systems (CSCO) Outpaces Stock Market Gains: What You Should Know
Cisco Systems (CSCO) closed at $53.42 in the latest trading session, marking a +1.86% move from the prior day. This change outpaced the S&P 500's 0.74% gain on the day.
Heading into today, shares of the seller of routers, switches, software and services had gained 1.02% over the past month, lagging the Computer and Technology sector's gain of 3.03% and the S&P 500's gain of 3.21% 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%. Meanwhile, our latest consensus estimate is calling for revenue of $12.58 billion, up 4.96% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.22 per share and revenue of $49.16 billion, which would represent changes of +0.31% and -0.29%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for CSCO. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 has moved 0.02% lower within the past month. CSCO is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, CSCO currently has a Forward P/E ratio of 16.29. For comparison, its industry has an average Forward P/E of 19.92, which means CSCO is trading at a discount to the group.
We can also see that CSCO currently has a PEG ratio of 2.61. 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. Computer - Networking stocks are, on average, holding a PEG ratio of 2.61 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 206, putting it in the bottom 19% 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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