Beta Research has recommended Cisco Systems, Inc. as a long term growth pick, with a current stock price changing hands at $29.98. The tech giant has proven a resilient growth during the previous years.
Given a 12.60% yield on earnings per share growth and a 2.60% revenue growth over the same time frame, market participants have considered the stock as a long growth candidate.
Long-term growth (LTG) is an investing strategy, in which the stock is expected to grow in value for a long period of time. It is a term relative to investors’ strategy that involves different styles and goals with a similar output.
Expectations on Cisco Systems, Inc
Cisco Systems, Inc.’s stock performance stood at 0.06% in the last twelve months, while for the last week of the month, it settled at -0.56%, -0.67% over the last quarter, and -0.47% for the last six months.
Meanwhile, analysts and investors are expected to closely watch on the tech giant’s next earnings release scheduled around February 15, 2017 for the ending period of January 31, 2017.
Sell-side analysts covering Cisco Systems, Inc. issued a quarterly earnings per share estimate of $0.5, with an earnings per share (EPS) of $0.53 amid the same quarter prior year.
Some analysts were seen making an update on the company’s projections before and after the earnings report. Consequently, analysts affirmed a mean target price of $32.227 on the stock.
The highest estimate set by analysts is 40, while the lowest target price share is seen at $22 within the same period.
Subsequently, the tech giant returned almost $5 billion dollars in cash dividends over the last four quarters.
Based on the reports, about $3.9 billion shares were allocated toward share repurchases, with a total value of $8.9 billion combined against an essential earnings power of $12 billion per annum.
With these significant data, a total payout of over 75% and a dividend payout ration above 40% suggests an old hat type of allocation for the company. Apparently, it hasn’t been the case for Cisco, but generating a cash flow component.
The chart below illustrates the price movement ahead of Cisco Systems, Inc. next earnings release for the period ending January 31, 2017.
There is no confirmation trend as of writing, but the stock prices posted six straight losses in a light trading volume. However, the stock price movement is in a consolidation path, which imply that there is no confirmation for a downward trend.
Although the stock is currently testing resistance 30.09, it could not confirm a bearish trend as the RSI stood at 44.4396, away from the oversold level.
As Cisco Systems, Inc. is set to announce its next earnings release on February 15, 2017, investors are expected to include the tech giant stock on their watch list before and after the earnings report.
So far, it could signal a consolidation tone if the stock will test support 29.86.
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