Cisco Systems (CSCO) rose by 6% on Thursday after the company posted earnings that beat Wall Street expectations.
Having completed its intermediate market cycle, we see plenty more upside in the coming months.
The company reported earnings per share of $0.78 and total revenue of $12.96 billion, compared to analyst estimates of $0.77 and $12.90 billion. For next quarter, management expects revenue growth of 4.5-6.5%, above the average estimate of 3.5%.
CEO Chuck Robbins beamed, “Our strong performance was across the business, reflecting our customers’ confidence in our strategy, business model and market-leading portfolio.”
Our analysis focuses on market cycles. We believe CSCO has now completed its most recently cycle and is in the rising phase of a new cycle.
This has been a strong stock. Its cycle patterns suggest new highs coming into the summer. Our target is well over $60.
Cisco Systems (CSCO) Stock Weekly Chart
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