Cisco Stock Cools From Highs Ahead of Earnings Report

The stock could be ripe for a fresh round of analyst upgrades

Digital Content Manager
Aug 17, 2021 at 2:48 PM
facebook twitter linkedin

Cisco Systems Inc (NASDAQ:CSCO) is gearing up to release its fiscal fourth-quarter earnings report, due out after the close tomorrow, Aug. 18. The security is pulling further away from its Aug. 13, two-year peak of $56.62, and is down 0.9% to trade at $55.78 at last check.

The equity has the support of its 20-day moving average, which helped guide it toward its recent highs. Meanwhile, the 60-day moving average sits further below as a potential floor as well, after containing the stock's June pullback. CSCO sports a 24.6% year-to-date lead, and is up 32.5% year-over-year. 

csco chart aug 17

Most analysts covering Cisco Systems stock are optimistic, though there are a few hold outs. Ten call the stock a "buy" or better, while six say "hold." The 12-month consensus price target of $56.44 is a mere 1.3% premium to current levels, indicating CSCO could be ripe for a round of upgrades and/or price-target hikes. 

Short-term options traders have rarely been more call-biased. This is per the security's Schaeffer's put/call open interest ratio (SOIR), which its higher than just 6% of readings from the past 12 months. 

The day after its last eight earnings reports, CSCO was higher a mere three times, averaging a next-day return of 5.9%. This time around, the options pits are pricing in a slightly bigger post-earnings move of 6.2%.


If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!



Special Offers from Schaeffer's Trading Partners