Cisco Systems stock rises 16% in a year, driven by expansion into cybersecurity and cloud

From Nasdaq: 2024-12-20 11:26:00

Cisco Systems (CSCO) shares have risen 16% in the past year, trailing behind the Computer & Technology sector’s 30.7% growth and the Computer – Networking industry’s 15.3% return. The company’s expansion into cybersecurity, AI infrastructure, cloud solutions, and enterprise networking is propelling its growth and share performance.

Strategic partnerships with industry leaders have bolstered Cisco’s market presence, supported by a strong partner ecosystem. The company’s advancements in cybersecurity, including offerings like XDR and Secure Access, have further solidified its position in the market.

Despite trading above the 50-day and 200-day moving averages, indicating a bullish trend, CSCO stock is not cheap with a Value Score of C. The forward 12-month price/sales ratio of 4.04X is higher than the industry’s 3.52X.

For the second quarter of fiscal 2025, Cisco forecasts revenues of $13.75 – $13.95 billion and non-GAAP earnings per share between 89 cents and 91 cents. The Zacks Consensus Estimate for revenues is $13.86 billion, reflecting 8.36% year-over-year growth.

Looking ahead to fiscal 2025, Cisco anticipates revenues of $55.3 – $56.3 billion and non-GAAP earnings between $3.60 and $3.66 per share. The Zacks Consensus Estimate for full-year revenues stands at $55.93 billion, showing 3.95% year-over-year growth.

Despite challenges in the networking segment, Cisco’s expanding portfolio, strong partnerships, and growth in cybersecurity present promising opportunities. The stock currently holds a Zacks Rank #3 (Hold), suggesting a prudent approach to await a more favorable entry point.



Read more at Nasdaq: Cisco Systems Rises 16% in a Year: Buy, Sell or Hold the Stock?