We use cookies to analyze site traffic and improve your experience.
By accepting, you consent to the use of analytics cookies.

CSCO:NASDAQCisco Systems, Inc. Analysis

Data as of 2026-05-24 - not real-time

$120.41

Latest Price

6/10Risk

Risk Level: Medium

Executive Summary

Cisco’s stock is trading at $120.41, well above its 20‑day ($101.81), 50‑day ($89.89) and 200‑day ($77.88) simple moving averages, indicating a strong uptrend. The 14‑day RSI of 80.8 places the shares in overbought territory, yet the MACD line remains bullish with a positive histogram of 1.71, and volume is on an increasing trend, supporting continued momentum. Recent earnings showed a 12% revenue jump driven by AI demand, and management lifted FY26 revenue guidance to $62.8‑$63.0 billion, reinforcing the growth narrative. Analysts have upgraded the consensus to a “Buy” with a median price target of $125, suggesting modest upside of roughly 4% from current levels. However, the DCF‑derived fair value of $46.6 is dramatically lower than the market price, and the forward PE of 25.3 is above the industry average, flagging a significant valuation premium. The dividend yield of 1.4% with a 55% payout ratio remains sustainable given robust operating cash flow of $13.0 billion.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 6/10

Key Factors

  • Price is near the 52‑week high and resistance at $120.79
  • RSI indicates overbought conditions
  • Bullish MACD and rising volume support short‑term strength

Medium Term

1–3 years
Positive
Model confidence: 8/10

Key Factors

  • AI‑driven revenue growth of 12% YoY and raised guidance
  • Analyst consensus “Buy” with median target $125
  • Solid cash generation and sustainable dividend

Long Term

> 3 years
Positive
Model confidence: 7/10

Key Factors

  • Long‑term demand for networking infrastructure in AI workloads
  • Strong ROE (~25%) and healthy balance sheet
  • Dividend yield providing steady income

Key Metrics & Analysis

Financial Health

Revenue Growth12.00%
Profit Margin19.68%
P/E Ratio40.1
ROE25.23%
ROA7.34%
Debt/Equity67.54
P/B Ratio9.7
Op. Cash Flow$13.0B
Free Cash Flow$9.3B
Industry P/E39.5

Technical Analysis

TrendBullish
RSI80.8
Support$85.78
Resistance$120.79
MA 20$101.81
MA 50$89.89
MA 200$77.88
MACDBullish
VolumeIncreasing
Fear & Greed Index91.61

Valuation

Fair Value$46.57
Target Price$124.45
Upside/Downside3.36%
GradeOvervalued
TypeGrowth
Dividend Yield1.40%

Risk Assessment

Beta0.95
Volatility44.11%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskLow
Liquidity RiskLow

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.