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Is Cisco Systems Trading at a Discount to Analysts’ Estimates?

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Analysts’ 12-month price target

Of the 29 analysts covering Cisco Systems (CSCO), 19 have recommended a “buy” for the stock, none have recommended a “sell,” and ten have recommended a “hold.” Analysts’ stock price target for Cisco is $38.92 with a median target estimate of $40. Cisco is trading at a discount of 4% to the median analyst estimate.

Cisco stock has risen 26% in the trailing 12-month period and 27.3% since the start of 2017. It rose more than 15% in 2016. The stock has risen 5.5% in the past month and 0.5% in the past five trading days. Technology (QQQ) peers Hewlett Packard Enterprise (HPE), International Business Machines (IBM), and Microsoft (MSFT) have generated returns of 22%, -7%, and 36%, respectively, in the trailing 12-month period.

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Moving average convergence divergence

Cisco’s 14-day MACD (moving average convergence divergence) is 0.80. Since its MACD is positive, it suggests an upward trading pattern. Cisco has a 14-day RSI (relative strength index) score of 72, which suggests that the stock is trading in oversold territory.

Moving averages

On December 26, 2017, Cisco closed the trading day at $38.48. Based on that price, the stock’s moving averages are as follows:

  • 12.6% above its 100-day moving average of $34.17
  • 7% above its 50-day moving average of $35.98
  • 1.4% above its 20-day moving average of $37.94
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