The Zacks Analyst Blog Cisco, NVIDIA and AT&T

For Immediate ReleasesChicago, IL – February 11, 2025 – Zacks.com announces the list of stocks and ETFs featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Cisco Systems CSCO, NVIDIA NVDA and AT&T T.  Here are highlights from Tuesday’s Analyst Blog:Should Cisco Systems Be in Your Portfolio Pre-Earnings?Cisco Systems is set to release its second-quarter fiscal 2025 results on Feb. 12.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The company anticipates second-quarter fiscal 2025 revenues between $13.75 billion and $13.95 billion. Non-GAAP earnings are expected between 89 and 91 cents per share.The Zacks Consensus Estimate for revenues is pegged at $13.86 billion, indicating growth of 8.36% from the year-ago quarter’s reported figure. The consensus mark for earnings has been steady at 91 cents per share in the past 30 days, suggesting year-over-year growth of 4.6%.Cisco Systems, Inc. price-eps-surprise | Cisco Systems, Inc. QuoteCSCO’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 4.14%.Let’s see how things are shaping up prior to this announcement.Key Factors to Note for CSCO’s Q2 EarningsCisco’s second-quarter fiscal 2025 results are expected to have benefited from improved demand for networking products. Strong demand for Nexus brand of data center switches and growing interest in CSCO’s 400 gig and 800 gig switches based on Silicon One.The Zacks Consensus Estimate for fiscal second-quarter Networking revenues is currently pegged at $6.663 billion, indicating a 6% year-over-year decline.In the fiscal first quarter, Collaboration product orders grew double-digits, driven by demand for devices and Cisco’s Cloud Webex Suite. The introduction of Webex AI Agent, AI Agent Studio, and Cisco AI Assistant features for Webex Contact Center is expected to have driven top-line growth.The consensus mark for Collaboration revenues is pegged at $1.004 billion, indicating 1.5% growth on a year-over-year basis.Cisco is benefiting from strong security growth, driven by robust demand for solutions like XDR, Secure Access and Multicloud Defense suites. The addition of Splunk has been a key catalyst.In first-quarter fiscal 2025, Security orders more than doubled year over year, driven by the advanced threat intelligence capabilities of Splunk.The Zacks Consensus Estimate for fiscal second-quarter Security revenues is currently pegged at $1.987 billion, indicating 104.2% year-over-year growth.CSCO Shares Outperform Sector, IndustryCisco shares have gained 24.5% in the trailing 12 months, outperforming the Zacks Computer & Technology sector’s appreciation of 20.7% and the Zacks Computer Networking industry’s return of 23.6%.However, Cisco stock is not so cheap, as the Value Score of D suggests a stretched valuation at this moment.In terms of the forward 12-month P/S ratio, CSCO is trading at 4.34X, higher than the industry’s 3.98X.Cisco’s Prospects Ride on Strong PortfolioThe increase in AI-related workload presents a strong growth opportunity for Cisco, thanks to an innovative portfolio. Cisco’s aggressive investments in AI, cloud, and cyber security are noteworthy. It expects to surpass more than $1 billion in orders for fiscal 2025.Cisco 8000, with Cisco’s Silicon One G200, are scalable, programmable, low-power switches with advanced load balancing and observability, which makes them ideal for AI networks. These features are driving hyperscalers to adopt the Cisco 8000 for maximum power efficiency in their back-end AI training networks.HyperFabric, Cisco’s fabric-as-a-service solution, is expected to be available in early calendar 2025, further simplifying infrastructure deployment and management while providing real-time visibility into network performance.CSCO’s wireless innovations, with Wi-Fi 7 access points and built-in AI, offer secure and adaptable wireless connectivity. Integrated with Cisco Spaces, these solutions optimize and enable smart workplaces.CSCO’s software portfolio includes innovative platforms like AppDynamics for full-stack observability and Cisco SecureX for integrated security management. Its collaboration tools, such as Webex AI Agent, AI Agent Studio and Cisco AI Assistant for the Webex Contact Center, leverage conversational intelligence and automation to boost customer satisfaction and productivity.Rich Partner Base Boosts CSCO’s ProspectsCisco’s rich partner base, which includes NVIDIA and AT&T, deserves attention.CSCO’s collaboration with NVIDIA is helping to expand the former’s datacenter infrastructure portfolio. CSCO’s latest NVIDIA-powered AI server and AI PODs, integrated with NVIDIA’s AI Enterprise cloud-native software and managed via Cisco Intersight, simplify and de-risk AI infrastructure.ConclusionCisco’s near-term results are expected to benefit from an improving networking business and growing security business. An expanding portfolio and a strong partner base are key catalysts that can help CSCO shares appreciate in fiscal 2025.Cisco currently carries a Zacks Rank #2 (Buy), which implies that investors should start accumulating the stock ahead of the fiscal second quarter results. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Previewreports. If you want an email notification each time Sheraz publishes a new article, please click here>>>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.com                                     https://www.zacks.com                                                 Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks 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 AT&T Inc. (T): Free Stock Analysis Report Cisco Systems, Inc. (CSCO): Free Stock Analysis Report NVIDIA Corporation (NVDA): 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