Cisco Systems Inc. CSCO has surged with a year-to-date rise of 16.23% and an impressive 8.18% jump just in the past month. As the company prepares to announce its first-quarter earnings on Wednesday after market close, excitement is building on Wall Street. Analysts are predicting an earnings per share (EPS) of 87 cents and total revenues of $13.77 billion.

With such momentum, the question remains: Can Cisco maintain this bullish trend?

JPMorgan Predicts Continued Growth for Cisco

JPMorgan believes the answer is yes. On Monday, the investment firm upgraded Cisco to an Overweight rating and increased its price target from $55 to $66, citing strong demand in enterprise networking.

JPMorgan asserts that, despite a surge following the Q4 earnings report, Cisco has further growth potential thanks to expanding AI infrastructure and new collaborations, notably with LTIMindtree focused on global SASE solutions.

This partnership is expected to enhance Cisco’s presence in secure hybrid work solutions, an increasingly vital area in today’s market.

The company also announced its next-generation Wi-Fi 7 access points, which are AI-driven and designed for smart spaces. These products enhance Cisco’s advanced networking offerings, aimed at ensuring seamless connectivity for both in-office and remote employees.

Read Also: Cisco Q1 Earnings Preview: EPS and Revenue Beat Streak as Analysts Anticipate Possible ‘Large-Cap Breakout’

Cisco Stock Showing Strong Bullish Trends

Technical indicators reveal that Cisco’s stock is currently on a strong bullish path.

Chart created using Benzinga Pro

Currently priced at $58.71, Cisco’s stock sits above its five, 20, and 50-day exponential moving averages, indicating a positive trend. Its eight-day simple moving average is at $57.76, the 20-day SMA at $56.66, and the 50-day SMA at $53.82—all below the current price, which indicates strong bullish signals.

However, caution is warranted. Cisco’s Relative Strength Index (RSI) at 76.37 indicates it may be overbought. Additionally, the Moving Average Convergence/Divergence (MACD) reading of 1.30 strongly supports bullish sentiments but raises the possibility of a pullback.

While strong momentum is evident, investors should monitor the upcoming earnings announcement closely. If Cisco surpasses expectations, further gains may follow, but any disappointments could trigger a swift market correction.

For now, Cisco bulls appear to be in charge, but the upcoming earnings call will reveal if the networking leader can sustain its current growth trajectory.

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