Cisco Systems Inc CSCO is set to announce its second-quarter earnings this Wednesday. Analysts project earnings per share (EPS) of 91 cents and revenues totaling $13.87 billion, with the results disclosed after market hours.

The stock has gained 24.88% over the past year and has increased by 5.63% since the beginning of 2023.

Cisco Pioneers AI Innovation Ahead of Earnings

In preparation for its earnings report, Cisco is launching a series of AI-driven innovations that may significantly boost its stock. The company recently introduced its new smart switches, which utilize intelligent networking silicon and embed data processing units (DPUs), aiming to transform AI data center infrastructure.

Additionally, Cisco is aiding service providers in revamping their networks to efficiently manage the growing flow of AI data, creating new revenue streams in the process.

In collaboration with Mistral AI, Cisco has unveiled an AI Renewals Agent designed to streamline the renewal proposal process. This initiative is a notable advancement in enhancing customer experience (CX).

As AI emerges as a cornerstone of the next-generation internet, Cisco is positioning itself as a key player in this evolving landscape. Investors are keenly interested in how these innovations will impact the company’s financial outcomes when earnings are released.

Next, we will examine the stock’s technical performance and compare it to Wall Street’s expectations.

Read Also: How To Earn $500 A Month From Cisco Stock Ahead Of Q2 Earnings

Cisco Stock Shows Moderate Optimism Ahead of Q2

The stock for Cisco is demonstrating a moderate bullish trend, although there is some emerging selling pressure. Currently, it is trading above critical moving averages, indicating continued upward momentum.

Chart created using Benzinga Pro

Cisco stock is currently priced at $61.75, sitting above the 20-day simple moving average of $61.14 and the 50-day simple moving average (SMA) of $59.86, both indicators of a positive trend. The stock remains significantly above its 200-day SMA of $52.65, suggesting long-term strength. Nonetheless, the eight-day SMA at $62.06 indicates some selling pressure.

The Moving Average Convergence Divergence (MACD) stands at 0.77, bolstering a favorable outlook. However, the Relative Strength Index (RSI) at 57.02 implies that as Cisco stock rises further, it might reach overbought levels, which could lead to short-term adjustments.

Investors should keep an eye on the stock’s ability to maintain support at its shorter-term moving averages to validate the continuation of its upward trend.

Cisco Analysts Predict 8% Growth Potential

Ratings & Consensus Estimates: Currently, Cisco stock holds a consensus analyst rating of Buy, with a price target set at $59.50. Recent assessments from Citigroup and Morgan Stanley suggest an 8.01% growth potential, with an average target of $66.67.

Price Action: As of publication, Cisco stock was trading at $62.49.

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