Cisco Systems (CSCO) Ascends But Remains Behind Market: Some Facts to Note

Company Performance - Cisco Systems (CSCO) closed at $52.73, with a +0.42% change from the previous day, underperforming the S&P 500's gain of 0.97% [1] - The stock has increased by 7.82% over the past month, lagging behind the Computer and Technology sector's gain of 8.21% and the S&P 500's gain of 5.41% [1] - Upcoming EPS is projected at $0.87, indicating a 21.62% decline compared to the same quarter last year, with revenue expected at $13.76 billion, down 6.22% from the prior-year quarter [1] Fiscal Year Estimates - For the entire fiscal year, earnings are projected at $3.56 per share, representing a -4.56% change from the prior year, while revenue is expected to be $55.61 billion, reflecting a +3.36% change [2] - Recent changes to analyst estimates are crucial as they indicate the evolving short-term business trends, with positive revisions suggesting a favorable outlook on the company's health and profitability [2] Valuation Metrics - Cisco Systems has a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate remaining unchanged over the last 30 days [3] - The Forward P/E ratio stands at 14.76, which is a premium compared to the industry's average Forward P/E of 14.21 [3] - The PEG ratio for CSCO is 3.37, significantly higher than the average PEG ratio of 1.2 for Computer-Networking stocks [3] Industry Overview - The Computer-Networking industry ranks in the top 41% of all industries, with a current Zacks Industry Rank of 103 [4] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [4]