Buy Cisco’s Breakout Now

by Sam Collins | May 31, 2013 6:50 am

Cisco Systems (CSCO[1]) — 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.

CSCO Chart
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