Cisco Systems (CSCO) stock rises slightly but underperforms market with potential for growth

From Nasdaq: 2024-09-26 17:45:22

Cisco Systems (CSCO) saw a slight increase in trading, closing at $52.85. The stock lagged behind the S&P 500, Nasdaq, and Dow, which all experienced gains. Prior to this, CSCO had outperformed the Computer and Technology sector, showing positive momentum.

Analysts are anticipating a decline in earnings for Cisco Systems. Expected EPS is $0.87, a 21.62% drop from last year. Revenue is also predicted to decrease by 6.22%. However, the Zacks Consensus Estimates foresee a yearly earnings growth of -4.56% and revenue increase of +3.36% compared to the previous year.

Recent analyst estimates for Cisco Systems show a positive outlook, relating to potential stock performance. The Zacks Rank, a model using estimate changes, rates CSCO as a Hold. The Zacks Consensus EPS estimate increased by 0.04% in the last 30 days. This suggests potential growth in the stock price.

Cisco Systems is currently trading at a premium compared to its industry, with a Forward P/E ratio of 14.8. Additionally, its PEG ratio of 3.38 indicates a higher valuation. The Computer – Networking industry, where CSCO belongs, has an average PEG ratio of 1.22 and a Zacks Industry Rank of 146, indicating lower performance.

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Read more at Nasdaq: Cisco Systems (CSCO) Rises But Trails Market: What Investors Should Know