Cisco Systems (CSCO) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Cisco Systems (CSCO) ended the recent trading session at $67.95, demonstrating a -1.18% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.33%. Meanwhile, the Dow experienced a drop of 0.63%, and the technology-dominated Nasdaq saw a decrease of 0.22%. The seller of routers, switches, software and services's shares have seen an increase of 5.62% over the last month, surpassing the Computer and Technology sector's gain of 5.24% and the S&P 500's gain of 4.07%.Investors will be eagerly watching for the performance of Cisco Systems in its upcoming earnings disclosure. On that day, Cisco Systems is projected to report earnings of $0.97 per share, which would represent year-over-year growth of 11.49%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.61 billion, up 7.12% from the year-ago period. For the full year, the Zacks Consensus Estimates project earnings of $3.79 per share and a revenue of $56.59 billion, demonstrating changes of +1.61% and +5.19%, respectively, from the preceding year. Investors might also notice recent changes to analyst estimates for Cisco Systems. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook. Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.05% lower. As of now, Cisco Systems holds a Zacks Rank of #3 (Hold). Looking at its valuation, Cisco Systems is holding a Forward P/E ratio of 18.16. This indicates a premium in contrast to its industry's Forward P/E of 15.8. Investors should also note that CSCO has a PEG ratio of 3.33 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Computer - Networking industry was having an average PEG ratio of 1.04. The Computer - Networking industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 69, finds itself in the top 28% echelons of all 250+ industries. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions. #1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cisco Systems, Inc. (CSCO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks