Cisco Systems, Inc. (NASDAQ:CSCO) looking to display strength as it nears its next earnings release, expected to be August 14
Cisco Systems (CSCO) closed at $52.34 in the latest trading session, marking a -0.49% move from the prior day. This move lagged the S&P 500’s daily gain of 0.08%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, added 0.38%.
Heading into today, shares of the seller of routers, switches, software and services had lost 6.64% over the past month, lagging the Computer and Technology sector’s loss of 3.22% and the S&P 500’s loss of 3.57% in that time.
CSCO will be looking to display strength as it nears its next earnings release, which is expected to be August 14, 2019. The company is expected to report EPS of $0.82, up 17.14% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $13.39 billion, up 4.22% from the year-ago period.
It is also important to note the recent changes to analyst estimates for CSCO. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.24% lower. CSCO currently has a Zacks Rank of #3 (Hold).
Digging into valuation, CSCO currently has a Forward P/E ratio of 15.36. Its industry sports an average Forward P/E of 15.95, so we one might conclude that CSCO is trading at a discount comparatively.
Meanwhile, CSCO’s PEG ratio is currently 2.19. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. CSCO’s industry had an average PEG ratio of 2.19 as of yesterday’s close.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 54.79.
The projected lower bound is: 49.83.
The projected closing price is: 52.31.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 19.5409. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 5 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 32.48. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 1 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -128.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 15 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 10 period(s) ago.
Rex Takasugi – TD Profile
CISCO SYSTEMS closed down -0.260 at 52.340. Volume was 17% above average (neutral) and Bollinger Bands were 69% wider than normal.
Open High Low Close Volume___
51.830 52.490 51.210 52.340 24,128,600
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 54.69 55.77 50.93
Volatility: 34 29 32
Volume: 19,229,736 20,757,418 22,578,104
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
CISCO SYSTEMS is currently 2.8% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of CSCO.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on CSCO.O and have had this outlook for the last 7 periods.