Can Cisco Stock Help Avoid Extreme Market Volatility?

Cisco stock was clobbered last week after the company's revenue miss

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When we last checked in with Cisco Systems, Inc. (NASDAQ:CSCO), the blue chip tech conglomerate was getting clobbered by a revenue miss and dismal outlook. Now that the dust has settled, what's CSCO's technical setup looking like?

Prior to that post-earnings bear gap, Cisco stock was already carving out a channel of lower lows. Along the way, the shares' 20-day moving average kept rallies in check. The equity bottomed at $41 though, so keep an eye on that level as a potential floor going forward.

The tech conglomerate now provides a better valuation at a forward price-earnings ratio of 11.27 and a price-sales ratio of 3.42 after Cisco stock’s depreciation this past year. CSCO also holds a stable balance sheet with $20.11 billion in cash and $9.42 billion in total debt. In addition, Cisco stock offers a very attractive dividend yield of 3.54% with a forward dividend of $1.52, making its current price an ideal entry point into one of the safest dividend stock’s available on the market.

Nonetheless, investors can expect very little appreciation from CSCO due to the business’ slow growth rate. For fiscal 2022, Cisco is estimated to increase revenues 3% and earnings 4%. CSCO is also estimated to grow revenues and earnings 3.6% and 6.3%, respectively, for fiscal 2023, making Cisco stock best suited for long-term investors looking to avoid the volatility in the market.

 

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