From Nasdaq: 2024-04-30 22:20:02

Cisco Systems Inc (NASDAQ: CSCO) is expected to report Q3 FY’24 results on May 14, with revenue projected at $12.8 billion, a 14% decline compared to last year. Slowdown in product sales due to customer focus on implementing recent purchases, competition from smaller companies, and limited networking spending by large firms are impacting growth. However, Cisco’s push towards recurring revenue and emphasis on cybersecurity could help boost the stock, which is currently undervalued at around $50 per share.
Cisco has been showing progress in gross margins with a recurring revenue model and service sales growth. CSCO stock performance has been mixed over the past few years, underperforming the S&P 500 in 2022 and 2023. The company’s value is estimated at $55 per share, 15% above the current market price. Trefis’ analysis suggests that Cisco may fare better than big tech peers in an economic downturn due to digitization and networking trends.
Investors can track CSCO’s performance and potential future returns based on recent figures. With a focus on recurring revenue amid changing market dynamics, Cisco is positioning itself for long-term growth and resilience. Overall, CSCO’s strategic moves in cybersecurity and recurring revenue, combined with its valuation and potential for outperformance in challenging economic conditions, make it an attractive option for investors seeking stability and growth.



Read more at Nasdaq: With Product Sales Sluggish, What To Expect From Cisco’s Q3 Earnings?