The Chaikin Power Gauge RatingTM for this Cisco Systems, Inc. $CSCO stock report is bullish due to strong earnings performance, bullish price/volume activity and positive expert opinions. CSCO’s earnings performance is strong as a result of a relatively low projected P/E ratio. Price and volume activity for CSCO is bullish which is indicated by a positive Chaikin price trend.
Financial Metrics Rating – Neutral
CSCO’s financial metrics are neutral. The company generates high free cash flow relative to market capitalization and is carrying too much long-term debt relative to its industry group. The rank is based on a high long-term debt to equity ratio relative to its industry group, high return on equity, high price to sales ratio and relatively high cash flow.
Earnings Performance Rating – Bullish
CSCO’s earnings performance has been strong. The company is priced relatively low compared to next year’s projected EPS and has outperformed analysts’ earnings estimates. The rank is based on poor EPS growth over the past 3-5 years, better than expected earnings in recent quarters, a relatively poor trend in earnings this year, a relatively low projected P/E ratio and consistent earnings over the past 5 years.
Price/Volume Activity Rating – Bullish
Price and volume activity for CSCO is bullish. CSCO has a rising price trend and has outperformed the S&P 500 over 26 weeks. The rank for CSCO is based on its price strength versus the market, positive Chaikin money flow, a positive Chaikin price trend and a negative Chaikin price trend ROC.
Expert Opinions – Bullish
Expert opinions about CSCO are positive. Shorting of CSCO is low and analysts’ opinions on CSCO have been more positive recently. The rank for CSCO is based on analysts revising earnings estimates upward, a low short interest ratio, insiders not purchasing significant amounts of stock, optimistic analyst opinions and relative weakness of the stock versus the Computer-Office Equipment industry group.
