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Cisco Systems, Inc. (CSCO), with a market cap of $255.05 billion, designs, manufactures, and sells Internet Protocol-based networking and other products related to the communications and information technology industry. The San Jose, California-based company offers enterprise network security, software development, data collaboration, cloud computing, and other related services.
Companies worth $200 billion or more are generally described as “mega-cap stocks,” and Cisco fits into the category, showcasing its scale, influence, and market presence within the communication technology industry. The company is known worldwide for its data center switching, indoor and outdoor wireless coverage designed for seamless roaming use of voice, video, and data applications, and network security, identity, and access management offerings.
Although the company comes with a significant global reach, CSCO has fallen 3.6% since hitting a 52-week high of $66.50 on February 13. On the bright side, the company’s shares have surged 8.1% over the past three months, compared to The Technology Select Sector SPDR Fund’s (XLK) 2.6% decline over the same time period.
Moreover, in the longer term, CSCO shares have surged 28.6% over the past six months and 33.4% over the past 52 weeks. By contrast, XLK has gained 2.8% over the past six months and has surged 10.2% over the past 52 weeks.
Despite recent fluctuations, CSCO has been trading well above its 50-day moving average since mid-August last year and over its 200-day moving average since mid-September.
On Feb. 25, CSCO shares surged 1.6% following the announcement of an expanded partnership with NVIDIA Corporation (NVDA) to provide AI technology solutions to enterprises. The company’s announcement successfully raised investors’ confidence and solidified CSCO’s position in the industry.
Additionally, the company’s stock surged marginally on February 12 following its Q2 earnings release. Cisco reported a 9% year-over-year increase in its revenue, which amounted to $14 billion. Also, its EPS came in at $0.77, surpassing the Wall Street EPS estimates by 4.1%.
Meanwhile, in the competitive communication technology arena, CSCO’s rival, Arista Networks Inc (ANET), has lagged behind CSCO over the past six months, with shares surging 9.1%. However, it outpaces CSCO with 36.3% returns over the past 52 weeks.
Moreover, Wall Street analysts remain moderately bullish on CSCO’s prospects. The stock holds a consensus “Moderate Buy” rating from the 19 analysts covering it. The mean target of $122.98 suggests a potential upside of 32.2% from the current market prices.
