As we step into September, the spotlight shines on Cisco Systems (NASDAQ: CSCO), a key player in the technology sector, specifically in the communications equipment service category. With an operating margin of 0.265 and a robust operating income of
14B, Cisco has demonstrated its financial strength despite a challenging market environment. The company's net income stands at 11.8B, with a change to net income of 1.2B. Notably, the company's revenue per share is 13.367, reflecting a solid performance. However, with a coefficient of variation of 580.08, the stock displays a certain level of risk. The current
analyst consensus holds the stock at a 'Hold' rating, with a potential upside of 1.69 and a possible upside price of 53.35. Despite a short ratio of 3.03 and shares short the prior month at 53.2M, the company's enterprise value to revenue ratio of 3.6647 suggests a potentially undervalued stock. As we delve deeper into the potential of Cisco Systems, investors are advised to consider these factors in their
decision-making process. The forthcoming quarterly report for Cisco Systems is anticipated on August 16, 2023. Currently, the stock is experiencing a sell-off trend. While some baby boomers may express concern about their positions in the communications equipment sector, it is entirely rational to consider Cisco Systems as a potential addition to your existing portfolio. We will explore the prospects of Cisco Systems' recovery in light of the recent economic outlook.
What is the right price you would pay to acquire a share of Cisco Systems? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the
future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our
stock advisor page.
What is happening with Cisco Systems this year
Annual and quarterly reports issued by Cisco Systems are formal
financial statements that are published yearly and quarterly and sent to Cisco stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the
Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as Cisco Systems often view their annual report as an effective marketing tool to disseminate their perspective on company
future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.
Cisco Systems Gross Profit
Cisco Systems Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Cisco Systems previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Cisco Systems Gross Profit growth over the last 10 years. Please check Cisco Systems'
gross profit and other
fundamental indicators for more details.
Is Cisco Systems valued appropriately by the market?
Earning per share calculations of Cisco Systems is based on official Zacks consensus of 9 analysts regarding Cisco Systems' future annual earnings. Given the historical accuracy of 97.18%, the future earnings per share of the company is estimated to be 0.95 with the lowest and highest values of 0.9 and 0.98, respectively. Please note that this consensus of annual earnings estimates for the firm is an estimate of EPS before non-recurring items and including employee stock options expenses.
Is Cisco a risky opportunity?
Let's check the volatility. Cisco is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Cisco (USA Stocks:CSCO) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. obtaining a share of a Cisco Systems stock makes you a part-owner of that company.
Cisco Systems Current Consensus
Here is the recent trade recommendation based on an ongoing consensus estimate among financial analysis covering Cisco Systems. The Cisco consensus assessment is calculated by taking the average estimates from all of the analysts covering Cisco Systems
| Strong Buy | 6 | 28.57 |
| Buy | 2 | 9.52 |
| Hold | 12 | 57.14 |
| Sell | 0 | 0.0 |
| Strong Sell | 1 | 4.76 |
As we step into September, the potential of Cisco Systems (NASDAQ: CSCO) is worth exploring. The communications and networking giant has a solid financial footing with a net asset of
94B and a total revenue of
51.6B. The company's operating income stands at 14B, indicating a healthy operating margin of 0.27%. Cisco's current ratio of 1.45X suggests a strong ability to meet short-term obligations, while its debt to equity ratio of 0.24% indicates a conservative approach to leveraging. The company's forward dividend rate of 1.56 and a yield of 0.0299% make it an attractive option for income-focused investors. The stock's beta of 0.99 suggests it moves largely in line with the market, making it a relatively stable investment. However, the downside deviation of 1.11 and semi variance of 0.8402 hint at potential risks. Despite these risks, Cisco's five-year return of 2.92% and the potential upside of 1.69 suggest that the stock could offer long-term growth. With 77.44% of shares owned by institutions, the market's confidence in Cisco is evident. As we move into September, Cisco Systems presents a compelling investment opportunity.
Cisco Systems is likely to close below $54 next week
Cisco Systems has recently witnessed standard deviation swings exceeding 1.04, indicating a heightened level of volatility and potential risk for investors. This increased fluctuation in the stock's price suggests that the company's shares may likely undergo a downward trend in the short term. Given the
current market conditions and the escalated volatility, it is conceivable that Cisco Systems' stock could close below $54 in the forthcoming week. Investors are advised to exercise caution and closely monitor the stock's performance. Cisco Systems exhibits relatively low volatility with a skewness of -0.45 and kurtosis of 0.16. However, we recommend all investors to conduct independent research on Cisco Systems to ensure all available information aligns with their expectations about its upside potential and future expected returns. Understanding different
market volatility trends often assists investors in timing the market. The correct use of volatility indicators allows traders to gauge Cisco Systems' stock risk against market volatility during both bullish and bearish trends. The elevated level of volatility that accompanies bear markets can directly affect
Cisco Systems' stock price, adding stress to investors as they witness their shares' value decline.
This typically compels investors to rebalance their portfolios by purchasing different stocks as prices drop. In conclusion, Cisco Systems (CSCO) presents a mixed investment opportunity. The Analyst Overall Consensus is a 'Hold', with 12 out of 18 analysts recommending this action. However, there are also 6 'Strong Buys' suggesting potential upside. The Analyst Target Price Estimated Value is
$55.944, slightly above the current Valuation Market Value of
$52.58. The possible upside price is $53.35, indicating a potential for growth. On the downside, the lowest estimated target price is $45, which is below the current market value. Therefore, investors should carefully consider these factors and their own risk tolerance before deciding to invest in Cisco Systems. .
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Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Aina Ster do not own shares of Cisco Systems. Please refer to our
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