Cisco Systems (CSCO) Advances But Underperforms Market: Key Facts

In the latest trading session, Cisco Systems (CSCO) closed at $54.27, marking a +0.04% move from the previous day. This change lagged the S&P 500's 0.77% gain on the day. At the same time, the Dow added 0.47%, and the tech-heavy Nasdaq gained 0.87%.The the stock of seller of routers, switches, software and services has risen by 8.94% in the past month, leading the Computer and Technology sector's gain of 6.36% and the S&P 500's gain of 4.87%.The investment community will be closely monitoring the performance of Cisco Systems in its forthcoming earnings report. The company is expected to report EPS of $0.87, down 21.62% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $13.76 billion, showing a 6.22% drop compared to the year-ago quarter.For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.56 per share and a revenue of $55.61 billion, signifying shifts of -4.56% and +3.36%, respectively, from the last year.Any recent changes to analyst estimates for Cisco Systems should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Cisco Systems is holding a Zacks Rank of #3 (Hold) right now.Looking at valuation, Cisco Systems is presently trading at a Forward P/E ratio of 15.25. Its industry sports an average Forward P/E of 14.31, so one might conclude that Cisco Systems is trading at a premium comparatively.Also, we should mention that CSCO has a PEG ratio of 3.48. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computer - Networking industry had an average PEG ratio of 1.25 as trading concluded yesterday.The Computer - Networking industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 103, this industry ranks in the top 41% 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.Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.7% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks