- Cisco is a stable and healthy technology company.
- The firm’s management expects 4-6% revenue growth for FY23.
- $50 represents the initial resistance mark.
Cisco Systems company saw its shares advancing within the past several days, and its technical outlook reveals continued uptrends past the resistance of $50 this month. Its stock trades under the NASDAQ: CISCO ticker.
Cisco Attractively Valued
Cisco Systems is a stable and healthy technology firm that might generate increased profitability because of its software-dedicated management team. UBS, a financial services firm and multinational investment bank, confirmed last week that it trusts in steady product innovation within the cyber security sectors.
Meantime, Cisco boasts a substantial upside potential. UBS believes cyber security, big data, and AI sectors traverse an inflection level that would witness quicker adoptions within the coming few years.
Sundeep Gantori, UBS’s strategist, stated that the firm predicts growth from 2020 $368 billion to $625B come 2025 in total revenue from the three fields. That implied a 10% annual average clip, better than the broad tech sector prediction.
Cisco remains on the right path, with the stock price lucratively valued due to its stable revenue growth plus massive free cash generation. Cisco announced its Q4 earnings last month. The total revenue hit $13.1 billion, $320M beyond expectations, whereas GAAP EPS stood at $0.83, beating by $0.01.
The management team revealed a $0.38 quarterly dividend share, payable on 26 October to shareholders of record by 5 October 2022. The supply chain issues that disrupted Cisco’s business within the past months started to ease.
Moreover, CEO Chuck Robbins expects the firm to witness massive performance during the coming quarters. The firm’s management anticipates a 4-6% revenue growth for FY23, whereas the Eps needs to land at $2.77 – $2.88.
Initial Hurdle at $50
Cisco continues to expand its business, with the company announcing better than anticipated Q4 earnings last month. Meanwhile, the technical picture indicates the price might advance past the resistance of $50 this month.
A move past $50 backs continued upsides, targeting the $55 mark. Meanwhile, dips beneath $43 would reveal a ‘sell’ signal, opening the road towards the massive support of $40.
Conclusion
Cisco shares have advanced within the past several days. Moreover, the technical picture suggests continued price hikes beyond the resistance of $50 this month. The firm stays in a lucrative spot to expand its business.
Moreover, the stock isn’t expensive considering the $188B market cap, whereas the reward/risk ratio remains lucrative for long-term market players.