Stocks of Cisco Systems Inc. Continue Downward Trend Amid Bearish Market

Cisco’s Shares Drop for Fourth Consecutive Day

The stock of Cisco Systems Inc. (NASDAQ:) continued its downward trend on Friday, marking the fourth consecutive day of losses. Despite the overall market downturn, Cisco’s performance outshined other tech giants, including Microsoft, Amazon, and Broadcom.

Stock Performance

Cisco’s shares closed at $52.93 in a bearish market that saw the S&P 500 and Dow Jones indices drop by 1.26% and 0.86%, respectively, to 4,224.16 and 33,127.28. This closing price is 92.58% of Cisco’s 52-week high, as per InvestingPro data.

Trading Volume

Trading volume for Cisco was notably high on Friday, exceeding its 50-day average with a total of 22 million shares traded. This activity, although higher than the company’s average daily volume, didn’t prevent the stock from remaining $5.26 below its 52-week high of $58.19, which was achieved on September 1st, 2023.

Resilient Performance

In comparison to its peers in the technology sector, Cisco’s performance during this bearish period appears relatively resilient despite its four-day losing streak. This resilience could be attributed to the company’s strong financial health, as indicated by InvestingPro Tips, which highlight that Cisco holds more cash than debt on its balance sheet and has high earnings quality, with free cash flow exceeding net income.

Investor Interest

Investors will be keeping a keen eye on Cisco’s stock as it continues to hover below its annual high. Additionally, they may be interested in the company’s upcoming earnings report, due on November 15, 2023. According to InvestingPro, Cisco’s P/E Ratio stands at 17.2, and its revenue growth has been accelerating, another key point from InvestingPro Tips. These factors, combined with the fact that Cisco has raised its dividend for 13 consecutive years, could make it an attractive option for investors despite the recent market downturn.

Conclusion

Despite the bearish market and four-day losing streak, Cisco Systems Inc. has demonstrated relative resilience. Its strong financial health and promising earnings outlook make it an appealing choice for investors. With its upcoming earnings report on the horizon, all eyes will be on Cisco as it strives to regain momentum in the market.