Cisco Systems (CSCO) Stock Slides as Market Rises: Facts to Know Before You Trade

In the latest trading session, Cisco Systems (CSCO) closed at $67.92, marking a -1.12% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.02%. Elsewhere, the Dow lost 0.14%, while the tech-heavy Nasdaq added 0.33%. Shares of the seller of routers, switches, software and services witnessed a gain of 0.06% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 6.31%, and the S&P 500's gain of 4.93%.The investment community will be paying close attention to the earnings performance of Cisco Systems in its upcoming release. The company is predicted to post an EPS of $0.97, indicating a 11.49% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue 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. It is also important to note the recent changes to analyst estimates for Cisco Systems. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook. Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system. The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% lower. Currently, Cisco Systems is carrying a Zacks Rank of #3 (Hold). In the context of valuation, Cisco Systems is at present trading with a Forward P/E ratio of 18.14. This denotes a premium relative to the industry average Forward P/E of 16.2. We can additionally observe that CSCO currently boasts a PEG ratio of 3.32. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computer - Networking industry had an average PEG ratio of 1.05 as trading concluded yesterday. The Computer - Networking industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 94, this industry ranks in the top 39% of all industries, numbering over 250. 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. Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com. 5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.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