Cisco had a fantastic start of the year. Its What are value stocks? A value company is a company that app... More has been going up making only shallow corrections on its way. Does the stock have the potential for further upside?
Why is it important?
There are multiple reasons for Cisco’s increasing valuation. When in February Cisco announced its financial results, its revenue rose by 7% annually to $12.4 billion and beat estimates by $30 million. The company’s performance during the second half of the year should also be quite well.
For What are value stocks? A value company is a company that app... More
The key businesses that yield Cisco Money is a generally accepted medium of exchange to buy and... More are infrastructure platforms, applications, and A security is a financial instrument, such as stocks and s... More. The company generates much income from subscriptions which guarantee steady monetary inflows. In addition, the cyclically low prices of components Cisco uses in its hardware also helped to boost profitability. The company managed to outbalance the weakened Chinese sales with increased results at emerging markets.
Buybacks are also positive for the stock’s What is price? The price is the measure of the value of good... More. During the quarter, Cisco spent $5 billion repurchasing 111 million What are value stocks? A value company is a company that app... More at an average price of $45.09 per share. Moreover, the company raised its What is a dividend? A dividend is a payment made by a comp... More. All in all, it has enough cash to continue this policy in the future.
Despite this positive staff, What are value stocks? A value company is a company that app... More will definitely start to worry at some point whether the company’s stock rose too fast and too far. Morgan Stanley analysts believe that Cisco’s growth rate will flatten. The company’s P/E ratio is above 21, which is a bit higher than the industry average. Other problem areas include high Debt is a type of liability. It is an obligation by one pa... More, lower return on assets and low net What is margin? In online trading, Margin is the amount a tr... More. All in all, the stock will become attractive at lower levels.
Bearish oscillator divergence on the daily chart means that Cisco stock will correct down at least to $54.00. If the price breaks below this What are "support levels" in trading? A support level is a... More, it will become vulnerable for a slide to $52.20 and $50.80. What are "resistance" levels in trading? A resistance level ... More is at $56.00 and $57.30.