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Is Cisco Trading at a Discount to Analyst Price Target Estimates in February 2018?

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Historical returns

Cisco Systems (CSCO) has generated a return of 34% in the trailing-12-month period, 7.9% in the last month, and 13.7% in the trailing-five-day period. The stock rose over 15% in 2016 and 31% in 2017, and it’s risen 15.8% since the start of 2018. Peer companies Juniper (JNPR), IBM (IBM), Microsoft (MSFT) and Ericsson (ERIC) generated returns of 2.3%, -4%, 41%, and 17%, respectively, in 2017.

Analyst recommendations

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Of the 29 analysts tracking Cisco, 20 have given the stock “buy” recommendations, and nine have recommended “holds.” No analyst has recommended a “sell” on the stock. Analysts’ price target for Cisco stock is $47.9 with a median target estimate of $48. Cisco is now trading at a discount of 8% to analysts’ median estimate.

Moving averages

Cisco closed the trading day at $44.33. Based on that price, the stock’s moving averages are as follows:

19% above its 100-day moving average of $37.25

11% above its 50-day moving average of $39.86

7% above its 20-day moving average of $41.33

RSI and MACD

Cisco’s 14-day MACD (moving average convergence divergence) is 0.36. A stock’s MACD is the difference between its short-term and long-term moving averages. Cisco’s positive MACD indicates an upward trading pattern.

Cisco has a 14-day RSI (relative strength index) score of 58, which shows that the stock is trading close to overbought territory. If an RSI is above 70, it indicates that a stock has been overbought. An RSI figure of below 30 suggests that a stock has been oversold.

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