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

Core Viewpoint - Cisco Systems is expected to show positive earnings growth in its upcoming release, with a projected EPS of $0.98 and revenue of $14.77 billion, indicating year-over-year increases of 7.69% and 6.69% respectively [2] Group 1: Recent Performance - Cisco Systems closed at $68.92, reflecting a +1.47% increase from the previous day, outperforming the S&P 500's gain of 0.37% [1] - Over the past month, Cisco's shares have appreciated by 1.52%, underperforming the Computer and Technology sector's gain of 8.04% and the S&P 500's gain of 4.26% [1] Group 2: Earnings Estimates - For the full year, earnings are projected at $4.04 per share and revenue at $59.58 billion, representing increases of +6.04% and +5.17% from the prior year [3] - Recent revisions to analyst forecasts for Cisco Systems are crucial as they reflect short-term business trends and can indicate analysts' favorable outlook on the company's health and profitability [4] Group 3: Valuation Metrics - Cisco Systems has a Forward P/E ratio of 16.8, slightly above the industry average of 16.78, indicating it is trading at a premium [7] - The company has a PEG ratio of 2.35, compared to the Computer - Networking industry's average PEG ratio of 1.11, suggesting a higher valuation relative to expected earnings growth [8] Group 4: Industry Context - The Computer - Networking industry, part of the Computer and Technology sector, ranks in the top 19% of all industries according to the Zacks Industry Rank [9] - The Zacks Rank system indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1, highlighting the competitive positioning of Cisco within its industry [9]