Is It Worth Investing in Cisco (CSCO) Based on Wall Street’s Bullish Views?
From Nasdaq: 2025-06-09 09:30:00
Wall Street analysts play a significant role in influencing stock prices with their recommendations. Cisco Systems (CSCO) currently holds an average brokerage recommendation (ABR) of 1.80, leaning towards a Strong Buy. However, studies show that brokerage recommendations may not always guide investors to profitable stocks due to analysts’ positive biases.
The Zacks Rank, a stock rating tool, offers a more reliable indicator of a stock’s potential performance based on earnings estimate revisions. Unlike ABR, the Zacks Rank focuses on quantitative models and historical trends in earnings estimate revisions to predict stock price movements accurately.
Cisco’s Zacks Consensus Estimate remains steady at $3.79 for the current year, resulting in a Zacks Rank #3 (Hold) due to minimal changes in earnings estimates. This suggests that the stock may perform in line with the market in the near term. Investors are advised to exercise caution despite the Buy-equivalent ABR for Cisco.
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