Will Cisco Systems Inc. (NASDAQ: CSCO) Stock Surpass $60.00?

• CSCO stock gained 9.38% monthly, 20.85% YTD, and 26.54% in a year. 
• Partnership with Nutanix and subscription service should help the rally. 

A strategic partnership between Cisco Systems Inc. and Nutanix and its subscription service led CSCO stock to gain 3.49% in a week. The partnership aims at providing the most complete hybrid cloud solution to simplify customer operations. It would also maximize resiliency and boost IT transformation. Moreover, the company announced subscription services for some of its services. 

Cisco Systems Inc. (CSCO Stock) – Financial Analysis

On September 4, Cisco announced the General Availability of Cisco Lifecycle Services. This move would expand their service offerings to help businesses, governments, healthcare, and others. The list includes Advice Me, Do It With Me, & Do It For Me, all aimed at achieving desired outcomes. 

Cisco Compute Hyperconverged, along with Nutanix, aims at boosting the infrastructure and application delivery anywhere, leveraging its best-in-class cloud operations. Between Q1 and Q2 2023, sales went from $14.57 Billion to $15.2 Billion, while sales grew from 7.20% to 4.34%. 

Cisco Systems Inc. (NASDAQ: CSCO) stock price gained 3.49% in a week, 16.17% in three months, 20.85% YTD, and 26.54% in a year. 

Cisco Systems Inc. (NASDAQ: CSCO) – Technical Analysis

CSCO stock, at press time, is trading at $57.84, gaining 0.85%; previous close and open were at $57.35 and $57.39, respectively. The 52-week range is from $38.60 to $58.19, suggesting that a slight push could create new highs. With an average volume of $18.63 Million shares, the market cap is $235.701 Billion. 

The trailing twelve-month (TTM) price-to-earnings (P/E) ratio is 18.84, suggesting a slightly undervalued stock price. At the same time, the (TTM) earnings per share (EPS) is $3.07, hinting at healthy financials. Analysts placed a 2.43 rating for HOLD and estimated a price target at $59.23 with a 2.4% upside. 

Cisco released Q2 earnings on August 16, 2023, where the reported revenue of $15.203 Billion surpassed the expected value of $15.05 Billion by 1.02%. The reported earnings of $1.14 per share also beat the estimated value of $1.058 per share by 7.79%. This positive earnings report caused CSCO stock price to gain 6.74% after the earnings. 

Compared to the previous quarter, the revenue gained 16.04%, while EPS jumped by 37.35%. The subsequent earnings will be reported on November 15, 2023, where the estimation for revenue is $14.628 Billion, while for EPS, it’s $1.031 per share. The (TTM) revenue is $13.93 Billion, and the year-over-year (YoY) quarterly revenue growth is 16.00%. 

Cisco Systems Inc. (CSCO Stock) – Candle Exploration

Since Q1 earnings in May 2023, CSCO stock price action has been in an uptrend as denoted by the ascending trend line. If all goes well, the price might cross the high point of $60.00. Such bullish momentum is followed by a slight drop. If so, the price might test the immediate buying zone.  

Considering the sharp move and market trend, a drop in the buying zone is unlikely, at least shortly. The ascending 200EMA and 50EMA hints towards a price jump. The RSI at 76.12, entering the overbought zone, hints towards a price drop. 

Disclaimer:

The views and opinions stated by the author or any people named in this article are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets and stocks comes with a risk of financial loss.