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What Cisco’s Technicals and Fundamentals Say Ahead of EarningsTech giant Cisco Systems NASDAQ:CSCO will report fiscal Q1 earnings next week at a time when its stock is up some 30% since August, but still below levels seen in both the 2021 and 2000 stock-market booms. What does the company’s technical and fundamental analysis look like heading into next Wednesday’s scheduled report date? Let’s check it out: Cisco’s Fundamental Analysis CSCO -- which sells systems for networking, security and cloud services -- plans to report earnings after the bell next Wednesday (Nov. 13). As I write this on Thursday afternoon (Nov. 7), analysts are expecting the company to post $0.87 in adjusted earnings per share on $13.75 billion of revenue. That would represent a 2.2% decline from the $0.89 in adjusted EPS that CSCO reported in the year-ago period, as well as a 6% drop year over year in revenues. The stock currently trades at 16x estimated forward earnings vs. the tech industry’s 28x average. CSCO also currently pays stockholders $1.60 per share in annual dividends (a roughly 2.85% dividend yield). Short interest stands at 1.43% of the stock's total float, which is very low by market standards. Meanwhile, Cisco generated $10.9 billion of operating cash flow and $10.21 billion of free cash flow in the 12 months ended July 27. Those look like fairly beefy numbers, and CSCO used $6.8 billion of that to repurchase common stock over the past 12 months, plus $6.4 billion to pay out dividends. As for Cisco’s balance sheet, the company had $18.6 billion in cash as of July 27, along with $3.4 billion of inventories and $38.9 billion in current assets. That measured up against $40.6 billion in current liabilities, excluding $11.4 billion in debt maturing within 12 months. Those numbers put the firm's current and quick ratios at 0.96 and 0.87, respectively. Such ratios might not look so hot to many investors, but Cisco’s list of liabilities includes $16.3 billion in unearned revenue -- something Wall Street generally doesn’t view as a true financial obligation. Once adjusted for unearned revenue, Cisco’s current and quick ratios improve to 1.58 and 1.46, which many would say isn’t bad at all. In fact, of the 18 sell-side analysts I found that cover Cisco, 14 have raised their earnings estimates for next weeks’ results since the current quarter began. Cisco’s Technical Analysis Here’s Cisco’s daily chart going back a little more than a year: Readers will see quite a lot going on here, such as a giant cup pattern that stretches September 2023 to the present time (the light-blue line in the chart above). This cup hasn’t yet added a handle, which such patterns don’t always produce. But when they do, the stock's pivot point traditionally moves from the pattern’s left-side top to its right-side top. Readers will also see that the cup pattern above displays a 100% Fibonacci retracement (denoted by the gray boxes above) of Cisco’s September 2023-to-August 2024 sell-off. A Raff Regression model (the shaded red and blue fields to the chart’s right) also illustrates this retracement move. The multiple orange ovals on the chart show areas where Cisco saw price gaps. Notably, the latest such gap from early November (denoted with the oval all the way to the chart’s right) has not yet filled. That fact and the stock’s 100% Fibonacci retracement suggest a potentially imminent addition of a handle to Cisco’s cup pattern. Additionally, readers will note that CSCO’s Relative Strength Index (the gray line at the chart’s top) borders on being technically overbought. That’s another sign of the stock forming a possible handle. Lastly, Cisco’s daily Moving Average Convergence Divergence -- or “MACD,” denoted by the black and gold lines and blue bars at the chart’s bottom -- looks somewhat noncommittal. CSCO’s 12-day Exponential Moving Average (or “EMA,” denoted with a black line above) is attempting to cross over its 26-day EMA, marked with a gold line. That’s typically a bullish technical indicator. However, the histogram of Cisco’s 9-day EMA (the blue bars above) is currently neither in positive nor negative territory. Add it all up and CSCO looks like it’s currently working with a $58 pivot point, which also happens to be the 100% Fibonacci retracement level. Should the stock’s chart develop a handle from here, Cisco’s pivot would likely remain at $58 given that the cup pattern’s two sides are of equal height. But if CSCO rallies a bit more ahead of developing a handle, its pivot point would typically rise. (Moomoo Markets Commentator Stephen “Sarge” Guilfoyle had no position in CSCO as of the time of writing this column.) This article discusses technical analysis, other approaches, including fundamental analysis, may offer very different views. The examples provided are for illustrative purposes only and are not intended to be reflective of the results you can expect to achieve. Specific security charts used are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. 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NASDAQ:CSCO
by moomoo
1
Target Reached on GMETV Followers, TV has taken down and removed quite a few of my posts/videos due to my QR tag being embedded in them. I was then subsequently suspended for a few days. So, I wanted to come back and just update you on a few of those posts that were removed. GME was one of them. GME reached the W-pattern target and has entered a large liquidity block. I have decided to sell here a few days ago for some nice profit. My signal has not flashed red yet, but I wanted to capture those nice gainz while I had them. I implemented my new indicator into my trading process in September of this year. Since that time we have not had a single loss recorded on our stock tracker! ZERO! None. All wins. Currently, we are in floating profit on all stock trades and killing it! Congrats to those who are following me in these trades. Our average time in each stock trade is around 17 days. This is exactly where I want to be in order to give you all the time to enter the trades and exit as I post my signals. To tell you the truth, we are doing much better than I imagined and are even beating our rate of profit on the crypto tracker! We have 12 exits for 12 wins, and the current trades will all exit in profit, equalling a 100% win rate over the last two months. I knew I had stumbled across something remarkable when I accidentally found my indicator combo while studying the charts. I am super excited about what the future holds for all of us! Today, I have raised the stops on all of my stock entries. I feel we may be starting to get a bit over-heated. I want to capture those profits while I have them. Best, Stew
NYSE:GME
by stewdamus
SWING IDEA - MEGASOFTNSE:MEGASOFT 's stock price has been retesting around the 50 resistance level for approximately one and half years. Following multiple retest, the stock finally broke out above this level in December 2023 and has since established it as a key support. The stock subsequently surged to a peak of 107, representing a 104% increase. However, it then experienced a sharp correction, plummeting 50% to revisit the 50 support level again. This pivotal point, formerly a resistance, has now become a robust support. Currently, MEGASOFT is exhibiting an upward momentum, poised to retest its swing high at 107. The weekly MACD crossover, occurring after the establishment of support at 50, indicates a bullish trend reversal. Immediate Short Term Target as mentioned in the chart with a potential to reach 13% from current Price Point is also observed. KEY OBSERVATIONS: - One year resistance level of 50 broken in December 2023 - Stock surged 104% to 107 before correcting 50% - 50 level now serves as robust support - Weekly MACD crossover indicates bullish momentum - Upward momentum poised to retest swing high at 107 RECOMMENDATION: Based on this technical analysis, I would recommend holding MEGASOFT for a Long Term horizon. This could potentially yield: - 37% returns from the current price (as of writing) - 104% returns from the support point (50) This analysis highlights a compelling buying opportunity in MEGASOFT, driven by its breakout and momentum reversal. IMPORTANT NOTE: Investors should be aware that there is a possibility that the stock may revisit this Support level at 50 in the near future before resuming its upward momentum towards the swing high at 107. This potential pullback should be monitored closely, and investors may consider adjusting their strategies accordingly. DISCLAIMER: This IDEA is for informational/educational purposes only and should not be considered as investment advice. The analysis presented is based on technical indicators and historical data but does not guarantee future performance. Please conduct thorough research based on financial goals and risk tolerance, and consult with a financial advisor before making any investment decisions.
NSE:MEGASOFTLong
by thepranam
Tesla at a Critical Level!Tesla is currently sitting at a crucial support level at $205. If the price closes below this level, we could see a retest of $180. A bounce could occur at either $205 or $180, both being strong support levels. Target: Take profit around $296, as indicated by strong resistance at this level. Key Levels: The red lines mark significant support and resistance levels. Rare Scenario: If Tesla breaks below $180, a gap down to $148 might need to be filled, which could present an ultimate buying opportunity. I’m not a financial advisor. Do your own research before making any trades. 📊🚀
NASDAQ:TSLA
by MarketPax
1
6/7/24 - $arlo - rich px 4 implied grow; wait for <$10 minimally6/7/24 - $vrockstar/private - NYSE:ARLO - doing a review today of all IOT-related names given my small 1% (as of now) starter position in NYSE:IOT (go read that for some nuance on sizing). here's a small cap now and my thinking. for now... not worth owning. i need a much better entry. setting target at sub $10 to take a closer look if/when. looks expensive w/ minimal cash gen (ex. stock comp) and between 2-3x sales seems okay generally for this IOT sector, but top line growth has had some severe hiccups, and expected growth is MSD-HSD at best (which might end turning out to be low). i like how the stock/ chart have performed well v the Q's over the last years, but this might just be a function of zip code (IOT) rising tide vs. actual bottoms up fundamentals. it's one i've got on my radar but need to get a better entry.
NYSE:ARLOShort
by VROCKSTAR
INTL closed above resistanceINTL has closed above the 0.382 fib level setting up my second entry along with two continuation gaps. I've placed my Buy order at 26.41, just above yesterdays high and my stop is at 21.36 which is just below the current swing low. INTL has a strong short term trend with the 8 ema above the 21 ema as well as the higher low and higher high. Price is currently in the very large gap of Aug 2024. INTL is a HIGHER risk trade for me based on the previous results. I think they will recover going forward but based on current results and I am underweight on INTL. If the 21 ema closes above the 89 ema i will look to add in again for the longer term trend.
NASDAQ:INTCLong
by WarrenCP
Blue Star Ltd Daily Chart Analysis The daily chart of Blue Star Ltd displays a mixed trend with visible levels of support, resistance, and clear price action signals, indicative of potential breakout and pullback scenarios. Price Action Highlights: 1. Trend Analysis: The stock appears to have been trading within a broad channel, with recent price movements consolidating near a key zone. Multiple trend lines intersect, indicating potential breakout and support zones. 2. Support and Resistance Levels: •Support: The key support level lies around ₹1,775.60, which has previously acted as a strong base for buyers. A breakdown below this level may signal further weakness. •Resistance: Immediate resistance levels are seen around ₹1,888.90 and ₹1,905.80, with a longer-term resistance at ₹2,007.80. A breakout above these levels with strong volume could indicate a bullish reversal. 3.Volume Analysis: The recent spike in volume suggests heightened market activity, typically associated with significant moves. High volume on bullish days can confirm buying interest, whereas volume surges on bearish days may signal distribution. 4.Price Pattern Formation: The chart shows a potential wedge or pennant formation, which often precedes a breakout in either direction. Watching how the price reacts around support and resistance levels will be crucial for determining direction. 5.EMA Levels: The stock is currently trading around the 13, 48, and 200 EMAs, indicating mixed sentiment. A sustained move above these averages, particularly the 200 EMA, would suggest stronger bullish momentum. 6.RSI Indicator: The RSI is around 42.46, indicating the stock is in the lower half of the range, showing mild bearish to neutral momentum. If RSI moves below 40, further bearish pressure could be expected. Conversely, a rise above 50 could indicate a potential bullish reversal. Potential Scenarios: •Bullish Case: A breakout above ₹1,888.90 with strong volume may signal a bullish reversal, targeting ₹2,007.80 and higher in the coming weeks. •Bearish Case: A breakdown below the support of ₹1,775.60 could lead to further downside, potentially testing the lower trendline support around ₹1,600. Summary: Blue Star Ltd is at a crucial juncture, with price action signaling potential for both breakout and consolidation. Traders should closely watch volume, support, and resistance interactions to gauge the direction of the next move. Disclaimer: This analysis is for educational purposes only and should not be considered as financial or trading advice. Please conduct your own research or consult with a financial advisor before making any trading decisions.
NSE:BLUESTARCO
by tintinhawk