Go to the list of all blogs
Harry Richardson's Avatar
published in Blogs
Nov 12, 2019
TickeronGET DAILY SIGNALS
Mixed Signals for Cisco Systems ahead of earnings

Mixed Signals for Cisco Systems ahead of earnings

Cisco Systems (Nasdaq: CSCO) is set to report fiscal first quarter earnings on Wednesday, November 13, after the closing bell. The tech bellwether is expected to report earnings of $0.81 per share. I am pretty certain the company will beat its EPS estimate because it almost always does. Cisco is the king of beating earnings by a penny or two—they have been doing it for years. The question is, how will investors react to the earnings report? That is what really matters.

Heading in to the report there are some mixed signals from the daily and weekly charts. On the daily chart we see that the stock has rallied over the last month or so and that has put the stochastic readings in overbought territory. The indicators did make a bearish crossover on November 11.

One other thing we see on the daily chart is that the 10-day moving average just crossed bullishly above the 50-day moving average. This is usually a sign of a change in the trend.

Looking at the weekly chart we see a stock that has just hit an upwardly-sloped trend line that connects the lows from 2017 and 2018. That trend line is just above the 104-week moving average (two years of data).

We also see that the weekly stochastic readings have just moved out of oversold territory in the last few weeks. The indicators did a little double-dip over the last few months, but the momentum seems to have changed a little in the past week or so.

Looking at the fundamental indicators for Cisco, the company has performed pretty well over the last few years. Earnings have grown by an average of 9% per year over the last few years and they were up 19% in the fourth quarter. Sales have increased at a rate of 2% per year and were up by 5% in the fourth quarter.

Where Cisco is well above average are its management efficiency measurements. The return on equity is an impressive 35.9% and the profit margin is at 32.8%. Both of these figures are well above average.

If we combine the ROE, the profit margin, and the sales growth we get the SMR rating from Tickeron. For Cisco the rating is 20 and that indicates 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 best rating a company can get is a 1 and the worst rating is a 100. Cisco is in the top 20th percentile.

Another area where Cisco does well is the Valuation Rating. Cisco scores a 7 in this category and that indicates that the company is seriously undervalued in the industry. A rating of 1 points to the most undervalued stocks, while a rating of 100 points to the most overvalued stocks. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization.

The Tickeron Profit vs. Risk Rating for Cisco is 20, indicating risk-aware approach on strong performance. The average Profit vs. Risk Rating for the industry is 72, placing this stock better than average.

One area of concern is the Tickeron PE Growth Rating. Cisco scores a 97, pointing to worse 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. A rating of 1 indicates highest PE growth while a rating of 100 indicates lowest PE growth. Furthermore, the PEG ratio is (0.0) for CSCO, as compared to the industry average of (4.1).

As far as the sentiment indicators for Cisco, they run the gamut. Analysts' ratings are slightly skewed to the bearish side, the short interest ratio is skewed to the bullish side, and the put/call ratio is neutral.

Related Ticker: CSCO

Contributor

Harry Richardson — Algorithmic Trader & Strategy Developer Harry is an algorithmic trader specializing in impulse and breakout trading strategies across cryptocurrency and equity markets. With more than 10 years of experience in developing automated trading systems, he focuses on building structured algorithms designed to capture momentum while maintaining strict risk control. His approach combines quantitative analysis, real-market execution, and continuous performance monitoring. Vitalii prioritizes risk management, drawdown control, and strategy stability over short-term optimization, ensuring algorithms are adaptable to changing market conditions. He has developed and tested hundreds of automated strategies, working extensively with live trading environments, forward testing, and portfolio-level algorithm management. His work centers on transforming trading ideas into fully operational, scalable automated systems.


CSCO in upward trend: price expected to rise as it breaks its lower Bollinger Band on November 05, 2026

CSCO may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 19 of 30 cases where CSCO's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 63%.

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where CSCO's RSI Oscillator exited the oversold zone, 13 of 21 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 62%.

The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 5 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.

Following a +1.97% 3-day Advance, the price is estimated to grow further. Considering data from situations where CSCO advanced for three days, in 227 of 359 cases, the price rose further within the following month. The odds of a continued upward trend are 63%.

Bearish Trend Analysis

The Momentum Indicator moved below the 0 level on October 16, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on CSCO as a result. In 38 of 84 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 45%.

The Moving Average Convergence Divergence Histogram (MACD) for CSCO turned negative on October 16, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 50 similar instances when the indicator turned negative. In 22 of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at 44%.

CSCO moved below its 50-day moving average on October 29, 2026 date and that indicates a change from an upward trend to a downward trend.

The 10-day moving average for CSCO crossed bearishly below the 50-day moving average on October 23, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 9 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 53%.

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 50 of 62 cases within the following month. The odds of a continued downward trend are 41%.

The Aroon Indicator for CSCO entered a downward trend on November 09, 2026. 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 Profit vs. Risk Rating rating for this company is 30 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 81, placing this stock better than average.

The Tickeron SMR rating for this company is 35 (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 PE Growth Rating for this company is 47 (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 Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.

The Tickeron Price Growth Rating for this company is 61 (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 Valuation Rating of 69 (best 1 - 100 worst) indicates that the company is slightly overvalued 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 (7.358) is normal, around the industry mean (5.210). P/E Ratio (27.932) is within average values for comparable stocks, (3.688). Projected Growth (PEG Ratio) (0.984) is also within normal values, averaging (0.778). Dividend Yield (0.018) settles around the average of (0.067) among similar stocks. P/S Ratio (6.784) is also within normal values, averaging (11.937).

Notable companies

The most notable companies in this group are Cisco Systems (NASDAQ:CSCO), Hewlett Packard Enterprise Company (NYSE:HPE), Lumentum Holdings (NASDAQ:LITE), Nokia Corp (NYSE:NOK), Ciena Corp (NYSE:CIEN), Ericsson (NASDAQ:ERIC).

Industry description

The Telecommunications Equipment industry produces voice and data communications equipment, which includes fiber optic delivery products, digital signal processors, high-speed voice, data and video delivery. Additionally, satellite systems, global positioning systems, wireless data systems, personal communications equipment, telephone handsets and payload equipment for satellites also fall into this category. Apple Inc., QUALCOMM Incorporated and Nokia are major global players in this segment.

Market Cap

The average market capitalization across the Telecommunications Equipment Industry is 16.85B. The market cap for tickers in the group ranges from 3.88K to 370.01B. CSCO holds the highest valuation in this group at 370.01B. The lowest valued company is DZSI at 3.88K.

High and low price notable news

The average weekly price growth across all stocks in the Telecommunications Equipment Industry was -6%. For the same Industry, the average monthly price growth was -17%, and the average quarterly price growth was -26%. CRNT experienced the highest price growth at 30%, while NUR experienced the biggest fall at -35%.

Volume

The average weekly volume growth across all stocks in the Telecommunications Equipment Industry was 1%. For the same stocks of the Industry, the average monthly volume growth was 13% and the average quarterly volume growth was -48%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 43
P/E Growth Rating: 49
Price Growth Rating: 66
SMR Rating: 74
Profit Risk Rating: 80
Seasonality Score: 23 (-100 ... +100)
Related Portfolios: TECHNOLOGY ETFs
Paper Trades 3
View a ticker or compare two or three
Interact to see
Advertisement
A.I.Advisor
published price charts
A.I. Advisor
published General Information

General Information

a manufacturer of Internet Protocol based networking products and services related to the communications and information technology industry

Industry TelecommunicationsEquipment

Industry
Computer Communications
Address
170 West Tasman Drive
Phone
+1 408 526-4000
Employees
82400
Web
https://www.cisco.com
Interact to see
Advertisement
AtlasClear Holdings (ATCH) shares fell roughly 25.5% over the last 30 days, declining from $0.1881 on October 2 to $0.1401 on October 30. The pullback extended a longer downtrend that has kept the stock trading well below the $1.00 NYSE American minimum, keeping continued listing-compliance risk in focus.
XRPN fell -9.70% in early regular-session trading on Tuesday, sliding from Monday's $10.41 close to $9.40. The decline follows a November 9 SEC prospectus disclosing a committed equity facility with Cantor to sell up to 5.2 million new Class A shares at 97% of the volume-weighted average price, implying up to roughly 16.7% potential dilution.
NVDA fell -2.10% to $216.66 during regular trading, down from a prior close of $221.30. Primary catalyst: hotter-than-expected September CPI data reignited Fed rate-hike fears, raising borrowing costs for AI infrastructure buildouts.
CCAP climbed +7.03% during regular market hours, rising from a prior close of $9.24 to $9.89. The rally followed its Q3 2026 report: net investment income of $0.37/share beat the $0.35 consensus and revenue of $36.9M topped estimates, alongside a new $50M buyback authorization plus up to $25M in additional Sun Life purchases.
NVDA dropped from Friday's close of $186.64 to $174.06 intraday, down -6.74%, during regular market hours. The slide followed CEO Jensen Huang's admission of an extramarital affair and the board's independent investigation, announced November 8, after reports he was targeted by a suspected Chinese intelligence operative.
Mixed Signals for Cisco Systems ahead of earnings