Cisco Systems (CSCO) Stock Moves -0.56%: What You Should Know

Cisco Systems (CSCO) closed the most recent trading day at $42.64, moving -0.56% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.88%. At the same time, the Dow lost 0.82%, and the tech-heavy Nasdaq gained 0.08%.

Prior to today's trading, shares of the seller of routers, switches, software and services had lost 5.2% over the past month. This has was narrower than the Computer and Technology sector's loss of 7.53% and the S&P 500's loss of 8.06% in that time.

Cisco Systems will be looking to display strength as it nears its next earnings release. 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.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.35 per share and revenue of $51.22 billion, which would represent changes of +4.04% and +2.81%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Cisco Systems. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 0.06% higher. Cisco Systems is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Cisco Systems is holding a Forward P/E ratio of 12.78. Its industry sports an average Forward P/E of 17.27, so we one might conclude that Cisco Systems is trading at a discount comparatively.

We can also see that CSCO currently has a PEG ratio of 1.97. 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 1.97 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 207, putting it in the bottom 19% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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