Cisco Systems Inc (NASDAQ: CSCO) is preparing to unveil its fourth-quarter earnings post-market on Wednesday.
Market analysts anticipate earnings per share of 85 cents and revenues of $13.54 billion for the quarter.
Analysis of Cisco’s recent stock performance reveals a 16.18% decline over the past year and a 10.58% drop year-to-date.
The current share price of $45.06 sits below its five-, 20-, and 50-day moving averages, indicating significant selling pressure.
The stock is hovering below key simple moving averages, including the eight-day at $45.36, 20-day at $46.69, and 50-day at $46.65, all hinting at a bearish trend.
Furthermore, the 200-day moving average stands at $48.70, reinforcing the pessimistic outlook.
Technical signals align with the downward trajectory. The Moving Average Convergence Divergence (MACD) is at -0.52, a bearish indication.
With a Relative Strength Index (RSI) of 39.35, the stock teeters on the edge of oversold territory, with no immediate signs of reversal.
In addition, Bollinger Bands ranging from $44.46 to $49.07 position the share price beneath the lower band, affirming the prevailing bearish sentiment.
Overall, Cisco Systems is grappling with considerable selling pressure and technical indicators point to an ongoing bearish trend.
Read Also: What’s Going On With Cisco Stock?
Potential Upside: Analysts Forecast 17%
Analysts hold a Neutral outlook on Cisco stock, with a consensus price target of $56.39. Projections from Piper Sandler, Barclays, and Wells Fargo suggest a potential 17.36% increase, targeting an average price of $53.
CSCO Price Action: At the time of writing, Cisco stock was trading at $45.16 on Tuesday.
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