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- 1 CSCO stock might soon cross its 52-week high.
- 2 Cisco Systems to enter the race for AI chip manufacturing.
The networking technology giant, Cisco Systems Inc., is entering the realm of AI chips, trading close to its 52-week high, and CSCO stock has fallen 0.78%. The company already boasts a new semiconductor family, G200 and G202, used in AI applications. Cisco recently published its 2023 Global Networking Trends Report, providing insights on how IT organizations develop their network technology.
Cisco Systems Inc. (CSCO Stock) – Financial Analysis
A metric that speaks positively about the company’s growth is its growing Return of Capital Employed (ROCE) along with the capital employed by the CISCO. ROCE means the return or the pre-tax profit generated through the capital invested in the business. Cisco Systems has a ROCE of a significant 21%. Also, it surpassed the 9.9% average ratings received by its peers in similar industries.
The semiconductor domain Cisco is trying to enter what is believed to be the home ground of Broadcom Inc. (NASDAQ: AVGO), down by 1.61% to $848.00, and Marvell Technology Inc. (NASDAQ: MRVL), which fell by 1.56% to $58.82. Both companies are already working extensively in developing AI chips, garnering investors’ interest.
At press time, CSCO stock is trading at $51.11 with a drop of 0.78%; previous close and open were at $51.51 and $51.06, respectively. The 52-week range is from $38.60 to $52.56, meaning the current price might soon create a new high. NASDAQ: CSCO rallied 0.49% in a week, 2.65% in a month, 6.79% YTD and 21.34% in a year.
With an average volume of 18.43 Million shares, the market comes at $208.276 Billion. The trailing twelve-month (ttm) price-to-earnings (P/E) ratio is 18.32, indicating the price is undervalued. Also, the (ttm) earnings per share (EPS) is $2.79. Analysts placed the price target at $57.00 with an 11.5% upside and put a 2.55 rating for moderate buy.
The last earnings were reported on May 17, 2023, where the revenue was said to be $14.571 Billion, surpassing the expected value of $14.395 Billion by 1.22%. As per the April 2023 report, the revenue swelled by 13.53% to $14.57 Billion, while the trailing twelve-month revenue is reported to be $54.9 Billion.
The year-over-year (YoY) quarterly revenue growth shows a jump of 13.50%, and the revenue per share comes at $13.37. Operating expenses gained 15.25% to $5.20 Billion, operating margin (ttm) jumped by 26.50%. Net income gained 5.52% to $3.21 Billion, net profit margin dropped by 7.08% to 22.04, while profit margin hiked by 20.89%.
Cisco Systems Inc. (CSCO Stock)- Candle Exploration
After the announcement of the last earnings report, there has been a strong upward momentum in CSCO share price; it also formed a short-term trend line. The stock price is bruising the 52-week high and can cross the immediate resistance to break the barrier anytime. It could intersect R1, but shall consolidate a bit before that.
If the price crosses the trendline, it could bounce off immediate support and consolidate in a range. It could also go below $49.33; it would consolidate below that. However, S1, $45.60, acts as solid support and price action might not break this barrier.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets and stocks comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
