CS:EURONEXT PARIS
AXA SA
Data as of 2026-03-10 - not real-time
$76.21
Latest Price
6/10Risk
Risk Level: Medium
Executive Summary
Cisco is trading at $76.21, below its 20‑day SMA (79.5) and 50‑day SMA (78.0) but above the 200‑day SMA (71.9), indicating a short‑term pullback within a longer‑term bullish backdrop. The stock sits just above the calculated support of $73.42 and well under the 52‑week high of $88.19, while the MACD has turned bearish and volume is trending lower, suggesting further downside pressure in the near term. Nevertheless, the RSI at 42 points to room for upside before overbought conditions emerge.
On the fundamentals side, Cisco posted 9.7% revenue growth, a robust 64.8% gross margin and a healthy 18.8% profit margin, while free cash flow exceeds $10 bn, supporting a 2.14% dividend with a 59% payout ratio. The DCF fair value of $49.5 is far below the current price, implying the stock is currently overvalued, yet the forward PE of 16.9 and analyst median target of $90 suggest a potential 15‑20% upside if earnings materialize as expected. The “Extreme Greed” reading on the fear‑greed index and a volatility of 48% underscore heightened market enthusiasm but also elevated risk.
On the fundamentals side, Cisco posted 9.7% revenue growth, a robust 64.8% gross margin and a healthy 18.8% profit margin, while free cash flow exceeds $10 bn, supporting a 2.14% dividend with a 59% payout ratio. The DCF fair value of $49.5 is far below the current price, implying the stock is currently overvalued, yet the forward PE of 16.9 and analyst median target of $90 suggest a potential 15‑20% upside if earnings materialize as expected. The “Extreme Greed” reading on the fear‑greed index and a volatility of 48% underscore heightened market enthusiasm but also elevated risk.
Trading Recommendations
Short Term
< 1 yearhold
Conviction: 6/10
Key Factors
- Price near technical support and below short‑term moving averages
- Bearish MACD and decreasing volume signal near‑term downside
- Strong cash flow and dividend provide downside cushion
Medium Term
1–3 yearsbuy
Conviction: 8/10
Key Factors
- Analyst median target of $90 implies ~15% upside
- Forward PE of 16.9 indicates earnings acceleration
- Solid revenue growth and high profit margins
Long Term
> 3 yearsbuy
Conviction: 7/10
Key Factors
- Sustainable free cash flow supports dividend and reinvestment
- Market leadership in networking and security infrastructure
- Diversified global customer base reduces geographic concentration
Key Metrics & Analysis
Financial Health
Revenue Growth9.70%
Profit Margin18.76%
P/E Ratio27.4
ROE23.75%
ROA6.99%
Debt/Equity66.51
P/B Ratio6.3
Op. Cash Flow$13.3B
Free Cash Flow$10.1B
Industry P/E36.8
Technical Analysis
TrendBullish
RSI42.2
Support$73.42
Resistance$88.19
MA 20$79.50
MA 50$78.03
MA 200$71.94
MACDBearish
VolumeDecreasing
Fear & Greed Index75.89
Valuation
Fair Value$49.50
Target Price$88.81
Upside/Downside16.53%
GradeOvervalued
TypeBlend
Dividend Yield2.14%
Risk Assessment
Beta0.92
Volatility48.28%
Sector RiskMedium
Reg. RiskMedium
Geo RiskLow
Currency RiskMedium
Liquidity RiskLow
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This analysis may contain inaccuracies. Not financial advice. Always do your own research before making any investment decisions.