While the titan that is Cisco Systems Inc. may not be making boisterous headlines, it’s quietly laying the groundwork for a robust technical breakout.
Recently, with the notable Golden Cross making an appearance, tech sage Jim Lebenthal of Cerity Partners tipped his hat to Cisco stock on CNBC’s ‘Halftime Report Final Trades,’ prognosticating that the stock will “stealthily ascend to a fresh peak for the year.”
Optimism abounds even in the shadow of Cisco’s 2024 marred with substantial layoffs. Having shed 7% of its workforce in August following an initial reduction of 4,000 employees in February.
Notwithstanding the personnel trimming, Cisco frames these actions as integral to its strategy to “pour resources into key growth ventures.” Despite the upheaval, Cisco has recorded its second-highest annual revenue, nearing the $54 billion mark.
From a technical perspective, the Golden Cross wave signaling a bullish trajectory sees Cisco’s share price positioned at $53.05—above its 50-day and 200-day moving averages of $49.06 and $48.74, in respective order. Moreover, the stock’s eight-day SMA of $52.46 and 20-day SMA of $50.76 reinforce the bullish trading momentum across short, medium, and long-term standpoints.
In defiance of some selling pressure, Cisco’s stock has surged by 5.91% in the last month and marks a nearly 5% increase year-to-date.
Lebenthal’s rosy outlook harmonizes with these positive technical signals, insinuating further growth on the horizon.
Investors are advised to maintain a vigilant eye on this cloaked behemoth, as the Golden Cross phenomenon could propel Cisco stock to unprecedented heights notwithstanding the tribulations it has weathered this year.
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