Cisco's 83rd-Ranked Trading Volume Amid Zacks Buy Rating and AI-Driven Infrastructure Expansion

Cisco Systems (CSCO) closed August 25 with a 0.27% decline, trading at $67.32 as daily trading volume fell 30.47% to $0.79 billion, ranking 83rd among S&P 500 components. The stock remains underpinned by a Zacks Rank #2 (Buy) upgrade, driven by a 4.5% upward revision in earnings estimates over three months. Analysts have raised 2026 EPS expectations to $4.02, reflecting confidence in Cisco's AI-driven infrastructure growth and expanding software portfolio.

Recent earnings results highlighted a 7.6% revenue increase to $14.67 billion, with annual recurring revenue (ARR) rising 5% to $31.1 billion. Strategic moves like the Splunk acquisition and AI-powered Hypershield security solution have strengthened Cisco's recurring revenue base. Institutional investors are also showing renewed interest, with Mirova increasing holdings by 106% in Q1 and Bank of America raising its price target to $85. The Zacks Consensus Estimate now reflects a 1% upward revision in 2026 earnings expectations over 60 days.

Cisco's short-term outlook is supported by a favorable risk-reward profile. Brokerage targets currently range from $69 to $87, implying a potential 29.2% upside from current levels. The stock trades at a forward P/E of 16.67x, below both industry and S&P 500 averages. With a 2.4% dividend yield and 27.02% return on equity, Cisco is positioning itself as a key player in AI infrastructure and cybersecurity, areas showing strong demand from enterprise clients.

Backtesting data for a high-volume trading strategy from 2022 to present shows a compound annual growth rate of 6.98%, with a maximum drawdown of 15.46% recorded in mid-2023. The strategy demonstrated consistent returns despite volatility, underscoring the potential of volume-based approaches in capturing market trends. This aligns with Cisco's recent performance, where strategic business shifts and institutional buying have contributed to its market resilience.