Thomson Reuters has estimates of $0.51 in earnings per share (EPS) and $12.36 billion in revenue for Cisco. That would represent about 6% EPS growth and about 4% sales growth. We would be quick to point out that Cisco has managed to beat its formal EPS estimates for at least four quarters in a row.
The consensus estimates for the coming quarter are $0.52 EPS and $12.6 billion in sales. That represents only about 2% in EPS growth and 4% in sales growth.
It was a long time ago that John Chambers conceded that Cisco’s growth would be dependent on global GDP growth. With weakness from International Business Machines Corp. (NYSE: IBM) and in EMC Corp. (NYSE: EMC), we expect that the analysts have lowered expectations enough that the bar is set very low here.
Cisco’s market cap is now more than $127 billion, and its valuations are very reasonable. The stock is valued at 11.3 times expected earnings and 2.5 times expected sales.
At a stock price of $23.80, its 52-week range is $16.69 to $26.49. The Thomson Reuters consensus stock price target from analysts is up at $26.51, implying more than 11% upside. Then there is that 2.85% dividend yield to consider.
Top Gaining Stocks
Top Losing Stocks