The Zacks Computer and Technology sector has been strong over the last month, up 11% and marginally outperforming the S&P 500.
A widely-recognized name in the realm, Cisco Systems, Inc. CSCO, is on deck to unveil Q1 earnings on November 16th, after the market close.
Cisco Systems is an IP-based networking company offering products and services to service providers, companies, commercial users, and individuals.
Currently, the company carries a Zacks Rank #3 (Hold) paired with an overall VGM Score of a B.
How does everything else stack up? Let’s take a closer look.
Share Performance & Valuation
CSCO shares have struggled to find their footing in 2022, down more than 25% and underperforming the S&P 500 by a fair margin.
Image Source: Zacks Investment Research
However, over the last month, CSCO shares have tacked on nearly 10% in value, outperforming the S&P 500 by a fair margin and indicating that buyers have finally stepped up to the plate.
Image Source: Zacks Investment Research
CSCO shares currently trade at a 14.5X forward earnings multiple, nicely beneath the 17.1X five-year median and representing a 36% discount relative to the Zacks Computer and Technology sector.
The company sports a Style Score of a B for Value.
Image Source: Zacks Investment Research
Quarterly Estimates
A singular analyst has upped their earnings outlook over the last several months, with the Zacks Consensus EPS Estimate of $0.84 suggesting a 2.5% Y/Y uptick in earnings.
Image Source: Zacks Investment Research
Cisco’s top-line also looks to register some growth, with the Zacks Consensus Sales Estimate of $13.3 billion indicating an improvement of 3.3% from year-ago quarterly sales of $12.9 billion.
Quarterly Performance
CSCO has an impressive earnings track record, exceeding the Zacks Consensus EPS Estimate in 20 consecutive quarters. Just in its latest print, the company registered a modest 1.2% bottom-line beat.
Top-line results have been primarily mixed across its last four reports, with two revenue beats and two misses. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Putting Everything Together
CSCO shares are in the red year-to-date but have outperformed the S&P 500 over the last month, perhaps indicating that the tide has started to turn.
The company sports a Style Score of a B for Value, with its current forward earnings multiple well below its five-year median and Zacks sector average.
One analyst has upped their earnings outlook for the quarter, with estimates indicating a Y/Y uptick in both revenue and earnings.
CSCO has consistently exceeded EPS expectations, but revenue results have been primarily mixed as of late.
Heading into the release, Cisco Systems, Inc. CSCO carries a Zacks Rank #3 (Hold) paired with an Earnings ESP Score of 1.5%.
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