Is Cisco Systems (CSCO) Stock a Buy Ahead of Q2 Earnings?

What's Happening With CSCO View more about CSCO >

Cisco Systems (CSCO) will report its fiscal second-quarter numbers February 13. The company will report after the market close with the consensus calling for earnings of $0.72 per share and sales of $12.4 billion. During the same period last year the company earned $0.63 and had revenue of $11.9 billion.

Technical Analysis

CSCO was recently trading at $46.59 down $2.88 from its 12-month high and $8.36 above its 12-month low. InvestorsObserver’s Stock Score Report gives CSCO an 80 long-term technical score and a 76 short-term technical score. The stock has recent support above $44 and recent resistance below $48. Of the 20 analysts who cover the stock 14 rate it Strong Buy, 3 rate it Buy, 3 rate it Hold, 0 rate it Sell, and 0 rate it Strong Sell, CSCO gets a score of 70 from InvestorsObserver’s Stock Score Report.

Analysts' Thoughts

Like many, Cisco stock took a big hit during the December correction, but shares quickly recovered and the stock is once again trading just below its 52-week high. CSCO stock has a great valuation, with shares trading at just 14 times forward earnings, and analysts expect to see 16.9% earnings growth for the current year, and an 9% per annum earnings growth over the next five years. The company has posted positive earnings surprises the last six quarters, and five straight revenue beats. The street expects another earnings beat this quarter with a whisper number of $0.74 for the quarter. Even with the recent rally Wall Street sees a lot of additional upside in the stock with an average price target of $52.29.

CSCO
About Cisco Systems Inc.

Cisco Systems, Inc. is the world's largest hardware and software supplier within the networking solutions sector. The infrastructure platforms group includes hardware and software products for switching, routing, data center, and wireless applications. Its applications portfolio contains collaboration, analytics, and Internet of Things products. The security segment contains Cisco's firewall and software-defined security products. Services are Cisco's technical support and advanced services offerings. The company's wide array of hardware is complemented with solutions for software-defined networking, analytics, and intent-based networking. In collaboration with Cisco's initiative on growing software and services, its revenue model is focused on increasing subscriptions and recurring sales.

  • Last Price:
    $56.40
  • Previous Close:
    $56.31
  • Change:
    $0.09 (0.16%)
  • Open:
    $56.63
  • Volume:
    17,891,349
  • Average Volume (100 Day):
    22,831,486
  • Market Capitalization:
    $248.3 B
  • Day's Range:
    $56.11 - $56.69
  • Dividend Yield:
    2.49%
  • 52-week Range:
    $58 - $40.25
  • P-E:
    20.60
  • EPS:
    $2.74
  • Earnings Date:
    5/15/19
  • Ex Dividend Date:
    4/4/19
  • Sector:
    Technology
  • Industry:
    Communication Equipment
  • Analyst Average Recommendation:
    Moderate Buy

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