Cisco Systems (CSCO) Surpasses Market Returns: Some Facts Worth Knowing

In the latest trading session, Cisco Systems (CSCO) closed at $68.92, marking a +1.47% move from the previous day. This move outpaced the S&P 500's daily gain of 0.37%. On the other hand, the Dow registered a loss of 0.14%, and the technology-centric Nasdaq increased by 0.71%. Shares of the seller of routers, switches, software and services have appreciated by 1.52% over the course of the past month, underperforming the Computer and Technology sector's gain of 8.04%, and the S&P 500's gain of 4.26%.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 $0.98, indicating a 7.69% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $14.77 billion, indicating a 6.69% increase compared to the same quarter of the previous year. For the full year, the Zacks Consensus Estimates are projecting earnings of $4.04 per share and revenue of $59.58 billion, which would represent changes of +6.04% and +5.17%, respectively, from the prior year. Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cisco Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, there's been a 0.1% rise in the Zacks Consensus EPS estimate. As of now, Cisco Systems holds a Zacks Rank of #3 (Hold). With respect to valuation, Cisco Systems is currently being traded at a Forward P/E ratio of 16.8. For comparison, its industry has an average Forward P/E of 16.78, which means Cisco Systems is trading at a premium to the group. Investors should also note that CSCO has a PEG ratio of 2.35 right now. 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 1.11 as of yesterday's close. The Computer - Networking industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 45, this industry ranks in the top 19% 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions. Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant 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