Cisco Systems Inc (NASDAQ: CSCO) is set to report its fourth-quarter earnings after market hours on Wednesday.
Wall Street expects 85 cents in EPS and $13.54 billion in revenues as the company reports.
Let's look at what the charts indicate for Cisco stock, which is down 16.18% over the last year and 10.58% year-to-date.
The share price of $45.06 is trading below its five-, 20- and 50-day exponential moving averages. This consistent positioning below key moving averages indicates significant selling pressure.
The stock is below its eight-day simple moving average of $45.36, 20-day SMA of $46.69 and 50-day SMA of $46.65, all of which signal bearishness.
The 200-day SMA stands at $48.70, further reinforcing the bearish outlook.
Technical indicators also suggest a negative sentiment. The Moving Average Convergence Divergence (MACD) is at negative 0.52, indicating a bearish signal.
The Relative Strength Index (RSI) of 39.35 suggests that the stock is near-about being oversold, but not yet in a position to reverse the downward trend.
Additionally, the Bollinger Bands, ranging from $44.46 to $49.07, place the current share price below the lower band, confirming the bearish sentiment.
Overall, Cisco Systems is experiencing strong selling pressure and technical indicators suggest a continued bearish outlook.
Cisco Analysts See 17% Upside
The consensus analyst rating on Cisco stock stands at a Neutral with a price target of $56.39. The latest analyst ratings from Piper Sandler, Barclays and Wells Fargo imply a 17.36% upside for Cisco stock with a $53 average price target.
CSCO Price Action: Cisco stock was trading at $45.16 at the time of writing Tuesday.