CSCO:NASDAQCisco Systems, Inc. Analysis
Data as of 2026-06-19 - not real-time
$119.54
Latest Price
6/10Risk
Risk Level: Medium
Executive Summary
Cisco’s price is trading above its 20‑day moving average and comfortably above the 50‑day average, signaling a bullish short‑term momentum despite a bearish MACD histogram and a neutral RSI that suggests room for upward movement. The stock sits near a solid support zone around the low‑$110s with resistance near the high‑$130s, and recent volume has remained stable, reinforcing the technical backdrop.
Fundamentally, Cisco delivers strong top‑line growth of roughly 12% YoY, healthy gross and operating margins, and robust free cash flow that comfortably covers its 55% dividend payout ratio. The forward earnings outlook is improving, reflected by a forward P/E near 25 versus a trailing P/E close to 40, and analysts have upgraded price targets to the low‑$130s, citing new AI‑driven cybersecurity and infrastructure management tools as a catalyst. The dividend yield of about 1.4% adds income appeal, while the balance sheet shows ample cash despite a high debt level, suggesting the dividend remains sustainable.
Fundamentally, Cisco delivers strong top‑line growth of roughly 12% YoY, healthy gross and operating margins, and robust free cash flow that comfortably covers its 55% dividend payout ratio. The forward earnings outlook is improving, reflected by a forward P/E near 25 versus a trailing P/E close to 40, and analysts have upgraded price targets to the low‑$130s, citing new AI‑driven cybersecurity and infrastructure management tools as a catalyst. The dividend yield of about 1.4% adds income appeal, while the balance sheet shows ample cash despite a high debt level, suggesting the dividend remains sustainable.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 6/10
Key Factors
- Bullish SMA crossover supporting near‑term upside
- Bearish MACD divergence tempering momentum
- Support level holding firm around $113
Medium Term
1–3 yearsPositive
Model confidence: 8/10
Key Factors
- AI‑driven revenue expansion and upgraded analyst price targets
- Improving forward earnings multiple and strong cash generation
- Attractive dividend yield with sustainable payout
Long Term
> 3 yearsPositive
Model confidence: 7/10
Key Factors
- Market leadership in networking and cybersecurity
- Continued dividend growth and solid balance sheet
- Strategic shift toward AI‑enabled infrastructure platforms
Key Metrics & Analysis
Financial Health
Revenue Growth12.00%
Profit Margin19.68%
P/E Ratio39.8
ROE25.23%
ROA7.34%
Debt/Equity67.54
P/B Ratio9.6
Op. Cash Flow$13.0B
Free Cash Flow$9.3B
Industry P/E38.1
Technical Analysis
TrendBullish
RSI55.8
Support$113.57
Resistance$130.37
MA 20$121.30
MA 50$105.04
MA 200$82.65
MACDBearish
VolumeStable
Fear & Greed Index92.14
Valuation
Fair Value$47.17
Target Price$127.05
Upside/Downside6.28%
GradeOvervalued
TypeGrowth
Dividend Yield1.41%
Risk Assessment
Beta1.02
Volatility52.57%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskLow
Liquidity RiskLow
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.