CSCO Stock Analysis: Buy, Sell, or Hold?

CSCO - Cisco Systems, Inc. Common Stock (DE)

Computer Communications Equipment
$78.32
-0.11 (-0.14%) ▼
HOLD
MODERATE Confidence
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Last Updated: January 30, 2026
Earnings: Feb 11, 2026 10d

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Interactive Price Chart (1 Month)

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💡
Bottom Line:
📊 HOLD: CSCO shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.

Long-Term Wealth Forecast (2031)

Based on Analyst Consensus Growth & Historical Valuation

0% (Stagnation) 50% (Hyper Growth)
EST. PRICE IN 2031
$108.97
Based on 6.3% avg growth
INTRINSIC VALUE TODAY
$67.66
Trading above fair value

How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 18.0x Exit PE.

In-depth Analysis How we analyze

Valuation Analysis: CSCO is currently trading at $78.32, which is considered extended relative to its 30-day fair value range of $74.33 to $77.93. The stock's valuation (Forward PE: 17.5) is in line with its historical norms (18.0). Remarkably, the market is currently pricing in an annual earnings decline of 0.9% over the next few years. This pessimistic expectation contrasts with the company's recent 6.0% earnings growth, suggesting potential undervaluation if the company simply maintains stability.

Technical Outlook: Technically, CSCO is in a strong uptrend. The price is approaching resistance at $79.48. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.

Market Sentiment: CSCO has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $86.95 (+10.9%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.

Quick Decision Summary

Current Position EXTENDED
Fair Price Range $74.33 - $77.93
Company Quality Score 66/100 (BUY)
Volume Confirmation HIGH
Confidence Score 59.5%

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All Signals

  • BEARISH: Price extended above range
  • BULLISH: Strong technical setup (60/100)
  • BULLISH: High volume confirmation
  • BULLISH: Trading below Wall St target ($86.95)

Fair Price Analysis

30-Day Fair Range $74.33 - $77.93
Current vs Fair Value EXTENDED

Support & Resistance Levels

Support Level $73.01
Resistance Level $79.48
Current Trend Strong Uptrend

Fundamental Context

Forward P/E (Next Year Est.) 17.53
Wall Street Target $86.95 (+10.9%)
Revenue Growth (YoY) 7.5%
Earnings Growth (YoY) 6.0%
Profit Margin 17.9%
Valuation Discount vs History -0.9% cheaper
PE vs Historical 17.5 vs 18.0 FAIR
Market-Implied Price Targets If current PE multiple persists
Implied Growth (YoY): -0.9% (market-implied from PE analysis)
1-Year Target $77.72 (-1%)
2-Year Target $77.02 (-2%)
3-Year Target $76.33 (-3%)
3-Yr Target (if PE normalizes) (PE: 18→18) $78.37 (0%)
3-Year Scenarios Using analyst projected EPS growth
Bull: (PE: 22.3, Growth: 8.5%) $127.40 (+62%)
Base: (SPY PE: 17.5, Growth: 8.5%) $100.16 (+28%)
Bear: (PE: 14.9, Growth: 8.5%) $85.14 (+9%)
📈 Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (30x PE), but valuation improves significantly next year (18x PE) as earnings recover.
Trailing PE: 30.49 | Current EPS (TTM): $2.59
Bull Case $150.02 (+92%)
Analyst growth 72.7%, PE expands to 33.5
Base Case $136.38 (+74%)
Market implied 72.7%, PE stable at 30.5
Bear Case $53.69 (-31%)
Severe decline -20.0%, PE contracts to 25.9
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡 Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 17.5 to 18.0
Stabilization Target: $80.52 (+2.7%)
PE Expansion Potential: +2.7%
Last updated: January 30, 2026 7:46 PM ET
Data refreshes hourly during market hours. Next update: 8:46 PM
🔥 Top Stocks Breaking Out Now
Ticker Score Recommendation Change %
Insider Activity (6 Months)
0
Buys
12
Sells
Net
INSIDERS SELLING
Recent Transactions
Val T. Hoyle SELL 2025-09-23
Oliver Tuszik SELL 17526 shares 2025-09-19
Thimaya K Subaiya SELL 1744 shares 2025-09-12

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Advanced CSCO Option Strategies

Professional options setups generated by AI based on today's CSCO price and gamma walls.

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