Cisco Is Trading below Moving Averages in December 2015

Industry Heavyweights: How Cisco, Juniper, and Palo Alto Stack Up

(Continued from Prior Part)

Shareholder returns and stock trends

As of December 9, 2015, Cisco (CSCO) has generated returns of -0.52% in the trailing-12-month period and -4.5% in the trailing-one-month period. The share price of the company has fallen by -2.6% in the trailing-five-day period.

Cisco’s peers Juniper (JNPR) and Palo Alto Network (PANW) have generated returns of -4.2% and -0.4%, respectively, in the trailing-five-day period.

Moving averages

On December 9, 2015, Cisco closed the trading day at $26.73. Based on this figure, here’s how the stock fared in terms of its moving averages:

  • 2% below its 100-day moving average of $27.3

  • 4% below its 50-day moving average of $27.75

  • 2% below its 20-day moving average of $27.24

MACD and relative strength index

A company’s MACD (moving average convergence divergence) is the difference between its short-term and long-term moving averages. On December 9, 2015, Cisco’s 14-day MACD was -0.15. This negative figure indicates a downward trading trend.

The company’s 14-day RSI (relative strength index) was 40, which shows that the stock is slightly oversold. Generally, if a company’s RSI is above 70, it indicates its stock is overbought. An RSI figure of below 30 suggests that a company’s stock has been oversold.

Analyst recommendations

Out of 43 analysts covering Cisco’s stock, 24 have issued a “buy” recommendation, five recommend a “sell,” and 14 recommend a “hold.” The analyst stock price target for the firm is $31.16 with a median target estimate of $32. This means that Cisco is trading at a discount of 20% to its median analyst estimates.

Palo Alto Networks makes up 4.5% of the PureFunds ISE Cyber Security ETF (HACK). Peer companies such as Cisco Systems (CSCO) and Juniper Networks (JNPR) make up 3.7% and 3.9% of the ETF, respectively. Palo Alto comprises 7.9% of the iShares North American Tech-Multimedia Networking ETF (IGN) as well.

Continue to Next Part

Browse this series on Market Realist: