Cisco Systems has recently become a popular stock on Zacks.com, prompting investors to analyze the events that may impact its performance in the short term. In the past month, Cisco’s stock gained -3.1%, compared to a +4% change in the Zacks S&P 500 Composite. The Zacks Computer industry – Networking, to which Cisco belongs, lost 3.5% during this period. The key question now is the future direction of Cisco’s stock.
Earnings estimate revisions are crucial in determining a company’s future earnings outlook, which in turn influences the fair value of its shares. Analysts covering Cisco have not revised their earnings estimates significantly in the past month. Cisco is expected to post earnings of $0.86 per share for the current quarter, representing a year-over-year change of -24.6%. The consensus earnings estimate for the current fiscal year is $3.68, indicating a year-over-year change of -5.4%.
Revenue growth forecast is another important indicator of a company’s financial health. For Cisco, the consensus sales estimate for the current quarter is $13.52 billion, reflecting a year-over-year change of -11.1%. The company reported revenue of $12.7 billion in the last reported quarter, with a -12.8% year-over-year change.
Valuation metrics such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash-flow (P/CF) ratios play a significant role in determining whether a stock is undervalued, overvalued, or fairly valued. Cisco has a Zacks Value Style Score of C, indicating that it trades on par with its peers.
In conclusion, while market rumors about Cisco may be circulating, its Zacks Rank #4 suggests that it may underperform the broader market in the near term. Investors are advised to consider all available information before making investment decisions.
Overall, analyzing factors such as earnings estimate revisions, revenue growth forecasts, and valuation metrics can provide a clearer picture of Cisco’s performance and potential in the stock market.
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https://finance.yahoo.com/news/cisco-systems-inc-csco-attracting-130016481.html
