Buy Cisco’s Breakout Now

CSCO broke from a five-year base on a breakaway gap

   
Buy Cisco’s Breakout Now

Cisco Systems (CSCO) — This manufacturer of IP-based networking and products related to communications and the IT industry has stabilized its profit margins after lower earnings in fiscal year (FY) 2011, ended in July. The company reported $1.49 for FY 2012, and analysts expect $2.01 in FY 2013 and $2.11 for FY 2014.

Technically, Cisco broke from a five-year base on May 16 after reporting fiscal Q3 earnings that beat analysts’ estimates and grew 14%, as both revenue and service sales improved. The breaking of the base created a breakaway gap that may not be filled by profit-taking. Buy CSCO at the market for a trade to $30 and a long-term objective of $40.

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Article printed from InvestorPlace Media, http://investorplace.com/2013/05/trade-of-the-day-cisco-systems-csco/.

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