CSCO:NASDAQ

Cisco Systems, Inc.

Data as of 2026-03-09 - not real-time

$75.51

Latest Price

6/10Risk

Risk Level: Medium

Executive Summary

Cisco (CSCO) is trading at $75.51, comfortably above its near‑term support of $73.42 but still well below the 52‑week high of $88.19, leaving room for upside. The stock sits under its 20‑day SMA ($79.46) and 50‑day SMA ($78.02), while the 200‑day SMA ($71.94) remains supportive, indicating a price that could re‑test higher averages. Technical momentum is mixed: RSI is at 40.6 (neutral), MACD shows a bearish histogram, yet the overall trend is flagged as bullish and the 30‑day volatility is elevated at 48.9%, suggesting price swings. Valuation metrics are nuanced – a trailing P/E of 27 is below the industry average of 36, forward P/E of 16.7 looks attractive, but the DCF fair value of $49.66 places the current price in the overvalued zone. Fundamentally, revenue grew 9.7% YoY to $59.1B, margins remain solid (gross 64.8%, operating 24.9%), and free cash flow exceeds $10B, supporting a 2.14% dividend with a 58.9% payout ratio. Recent earnings beat and the launch of the AI‑focused Silicon One G300 chipset provide a growth catalyst, even as Erste Group’s downgrade over margin concerns adds a note of caution. With an analyst consensus of “Buy” and a median price target of $90, the stock offers roughly 17% upside potential while delivering a stable dividend stream.

Trading Recommendations

Short Term

< 1 year
hold
Conviction: 6/10

Key Factors

  • Price near support and below short‑term moving averages
  • Mixed technical signals (bearish MACD, neutral RSI)
  • Recent earnings beat but margin concerns from analysts

Medium Term

1–3 years
buy
Conviction: 7/10

Key Factors

  • Revenue growth of ~10% and expanding AI networking portfolio
  • Attractive forward P/E of 16.7 versus industry peers
  • Dividend yield of 2.14% with strong cash flow coverage

Long Term

> 3 years
buy
Conviction: 8/10

Key Factors

  • Robust balance sheet with $15.8B cash and manageable debt levels
  • Consistent free cash flow generation supporting dividend sustainability
  • Strategic positioning in data‑center and security markets driving future growth

Key Metrics & Analysis

Financial Health

Revenue Growth9.70%
Profit Margin18.76%
P/E Ratio27.2
ROE23.75%
ROA6.99%
Debt/Equity66.51
P/B Ratio6.2
Op. Cash Flow$13.3B
Free Cash Flow$10.1B
Industry P/E36.2

Technical Analysis

TrendBullish
RSI40.6
Support$73.42
Resistance$88.19
MA 20$79.46
MA 50$78.02
MA 200$71.94
MACDBearish
VolumeDecreasing
Fear & Greed Index100

Valuation

Fair Value$49.66
Target Price$88.81
Upside/Downside17.62%
GradeFair
TypeBlend
Dividend Yield2.14%

Risk Assessment

Beta0.94
Volatility48.91%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskLow
Liquidity RiskLow

This analysis may contain inaccuracies. Not financial advice. Always do your own research before making any investment decisions.