Cisco Systems is set to report earnings this Wednesday. I have low expectations for this quarter given recent layoffs and the weak IT spending cycle. I remain optimistic in the longer term thanks to a high-quality business model, attractive valuation, and growing software and cybersecurity operations.
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Cisco (CSCO) has been suffering from sluggish networking sales due to lackluster demand and stiff competition offset by a strong and innovative portfolio as well as partner base.
The layoffs are the latest in the tech industry, which has been cutting costs this year to offset big investments in AI.
Cisco will cut thousands of jobs in a second round of layoffs this year as the U.S. networking equipment maker shifts focus to higher-growth areas, including cybersecurity and AI, people familiar with the matter said.
Beyond analysts' top -and-bottom-line estimates for Cisco (CSCO), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended July 2024.
The tech sector has been an area of strength for many years. It's propelled the S&P 500 and the Nasdaq Composite to new heights.
In my opinion, it's likely both companies can achieve analysts' growth estimates despite recent headwinds. Both companies have been aggressively pursuing additional investments, CSCO in AI and SBUX with partnerships. I recently purchased shares in Cisco Systems and Starbucks due to their attractive valuations and double-digit upside potential over the next 12-18 months. Both companies have strong fundamentals, strong earnings growth potential, and undervalued compared to their 5-year averages, presenting buying opportunities.
Tech stocks, including Internet of Things (IoT) stocks, are having a very tough time lately. Increased market tension is powered by a highly unstable geopolitical environment that has led to a sharp market selloff.
In the latest trading session, Cisco Systems (CSCO) closed at $45.16, marking a +0.94% move from the previous day.
Since the explosion of personal computing that started in the late 1970s and 1980s, San Jose headquartered Cisco Systems (NASDAQ: CSCO) has been an integral part of creating the means for computers to communicate with each other.
Cisco (CSCO) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.