Cisco (CSCO,$42.67) disappoints on revenue guidance
Cisco beat earnings estimates for fiscal fourth quarter. But it issued a grim revenue outlook for the current quarter.
For the three months ending in July, the computer networking equipment/technology company’s adjusted earnings came in at 80 cents a share. Analysts were expecting 74 cents.
Revenue of fell -9% year-over-year $12.2 billion, compared to analysts’ estimate of $12.09 billion.
Revenue from Americas fell -12%, while that from EMEA (Europe, Middle East and Africa) was down -6%. Sales from APJC (Asia-Pacific, Japan and China) was down -7%.
For fiscal first quarter, Cisco provided guidance for adjusted earnings in the range of 69 cents and 71 cents per share, which is below analyst consensus estimates of 75 cents per share. The company expects revenue to decline - 9% to -11% year-over-year, while analysts on average had projected a decline of about -7%.
According to Tickeron, CSCO's Aroon indicator reaches into Uptrend on August 03, 2020
For traders, this could mean going long on the ticker or exploring call options in the next month. In 185 of 326 cases where CSCO Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 57%.
Current price $42.67 crossed the support line at $43.65 and is trading between $43.65 support and $42.53 resistance lines. Throughout the month of 07/13/20 - 08/12/20, the price experienced a +5% Uptrend. During the week of 08/05/20 - 08/12/20, the stock enjoyed a +2% Uptrend growth.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator exceeded the 0 level on July 27, 2020. Traders may consider buying the ticker or exploring call options. In 48 of 85 cases where the ticker's Momentum Indicator exceeded 0, its price rose further within the subsequent month. The odds of a continued Uptrend are 56%.
The Moving Average Convergence Divergence (MACD) just turned positive. Considering data from situations where CSCO's MACD histogram became positive, in 25 of 50 cases, the price rose further within the following month. The odds of a continued Uptrend are 50%.
Bearish Trend Analysis
The Stochastic Indicator demonstrated that the ticker has stayed in the overbought zone for 6 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Fundamental Analysis (Ratings)
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 83%. During the last month, the daily ratio of advancing to declining volumes was 1.31 to 1.
The Tickeron Valuation Rating of 3 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.68) is normal, around the industry mean (6.01). P/E Ratio (19.09) is within average values for comparable stocks, (70.62). Projected Growth (PEG Ratio) (0.03) is also within normal values, averaging (6.87). CSCO's Dividend Yield (2.41) is considerably higher than the industry average of (0.33). P/S Ratio (3.57) is also within normal values, averaging (6.63).
The Tickeron SMR rating for this company is 19 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 31 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 69, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 52 (best 1 - 100 worst), indicating fairly steady price growth. CSCO’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 69 (best 1 - 100 worst), pointing to slightly better than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
CSCO's RSI Indicator recovers from oversold territory
The RSI Oscillator for CSCO moved out of oversold territory on May 05, 2023. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 30 similar instances when the indicator left oversold territory. In of the 30 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on May 16, 2023. You may want to consider a long position or call options on CSCO as a result. In of 84 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for CSCO just turned positive on May 11, 2023. Looking at past instances where CSCO's MACD turned positive, the stock continued to rise in of 50 cases over the following month. The odds of a continued upward trend are .
CSCO moved above its 50-day moving average on May 25, 2023 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CSCO advanced for three days, in of 319 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 8 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The 10-day moving average for CSCO crossed bearishly below the 50-day moving average on April 24, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CSCO declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
CSCO broke above its upper Bollinger Band on May 18, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for CSCO entered a downward trend on May 15, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.803) is normal, around the industry mean (8.925). P/E Ratio (17.857) is within average values for comparable stocks, (57.053). Projected Growth (PEG Ratio) (2.026) is also within normal values, averaging (2.139). Dividend Yield (0.031) settles around the average of (0.043) among similar stocks. P/S Ratio (3.744) is also within normal values, averaging (24.125).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. CSCO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock slightly better than average.
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