While Cisco Systems Inc. CSCO may not be making loud headlines, it's quietly setting the stage for a strong technical breakout.
With a Golden Cross in play, tech analyst Jim Lebenthal of Cerity Partners recently tipped Cisco stock on CNBC’s ‘Halftime Report Final Trades’ predicting the stock will "quietly hit a fresh high for the year."
Chart created using Benzinga Pro
This optimism comes even as Cisco's 2024 has been marked by significant layoffs. The company reduced its headcount by 7% in August after an earlier 4,000-employee reduction in February.
However, according to the company’s own statement, these cuts are seen as part of Cisco's strategy to “invest in key growth opportunities.” Despite the workforce shakeup, Cisco has reported its second-best year ever, with nearly $54 billion in revenue.
Chart created using Benzinga Pro
From a technical standpoint, the Golden Cross signals a bullish trend as Cisco's share price stands at $53.05âabove its 50-day and 200-day moving averages of $49.06 and $48.74, respectively. The stock's eight-day SMA of $52.46 and 20-day SMA of $50.76 further indicate that trading momentum is bullish across short, medium, and long-term indicators.
Even with some selling pressure, Cisco's stock has surged 5.91% in the past month and is up nearly 5% year-to-date.
Lebenthal's bullish forecast aligns with these upward technical signals, hinting at further gains ahead.
Investors may want to keep a close watch on this stealthy giant, as its Golden Cross could propel Cisco stock to new highs despite the challenges it has faced this year.
Read Next:
Photo: Shutterstock
Š 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
