Analyst Sees Improvement Heading Into the New Year on CSCO

Calls have been popular of late, too

Managing Editor
Dec 19, 2019 at 10:35 AM
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Technology giant Cisco Systems, Inc. (NASDAQ:CSCO) is the top Dow stock today, enjoying a 1.5% lift on the heels of an upgrade out of Barclays. Analyst Tim Long upgraded the blue chip to "overweight" from "equal weight," citing growth in a handful of key products that should improve within the next year for the company. CSCO is now trading at $47.32, overtaking the 80-day moving average for the first time since early August. Year-to-date, the security is holding just below its +10% year-to-date mark.

Coming into today, 14 of 20 covering firms sport a "buy" or "strong buy" recommendation. Even further, the stock's average 12-month price target of $52.40 stands 10.5% above current trading levels. 

In the options pits, call traders look to be circling the tech name. Data from the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) show CSCO with a 10-day call/put volume ratio of 4.60 ranking in the highest percentile of its annual range. 

Now also looks to be an ideal time to speculate on Cisco Systems stock with options. This is per the equity's Schaeffer's Volatility Index (SVI) of 18%, which sits in the 7th percentile of its annual range, which suggests that the stock's short-term options are pricing in extremely low volatility expectations right now. 

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