Cisco Systems' Shares Near 52-Week High, What's Next for CSCO Investors?

Cisco Systems (CSCO) shares closed at $69.27, near the 52-week high of $69.78. The stock has appreciated 17% YTD, beating the Zacks Computer & Technology sector and close peer Extreme Networks. Cisco's aggressive AI push and growing security dominance have been major growth drivers. The company secured AI infrastructure orders worth over $1 billion in fiscal 2025, a quarter ahead of schedule. Cisco's security business is benefiting from strong demand for both Cisco Secure Access, Hypershield, and XDR. The company offers positive 2025 guidance, expecting revenues to be $56.5-$56.7 billion.

Cisco Systems (CSCO) shares closed at $69.27 on July 1st, near the 52-week high of $69.78, marking a significant reversal in the stock's price action. The stock has appreciated 17% year-to-date (YTD), outpacing the Zacks Computer & Technology sector and close peer Extreme Networks. Cisco's aggressive push into artificial intelligence (AI) and growing security dominance have been major growth drivers, with the company securing AI infrastructure orders worth over $1 billion in fiscal 2025, a quarter ahead of schedule [2].

The day's trading action was dominated by sellers, with the stock closing near its lows for the session. The stock's journey from its 52-week low to its recent high represents a massive rally of over 56%, but the failure to decisively break through the $69.55 level signals a potential shift in momentum. This rejection at a critical resistance level has put investors on high alert [1].

Cisco's security business is benefiting from strong demand for Cisco Secure Access, Hypershield, and XDR. In the third quarter of fiscal 2025, orders grew double-digit, and the momentum is expected to continue as Splunk's solutions continue to gain traction. The acquisition of Snap Attack enhances Splunk's capability, and Cisco's partnership with NVIDIA is a game-changer for AI-ready data center networks [2].

For fiscal 2025, Cisco expects revenues to be $56.5-$56.7 billion, with non-GAAP earnings expected between $3.77 per share and $3.79 per share. The Zacks Consensus Estimate for CSCO's fiscal 2025 revenues is pegged at $56.59 billion, indicating growth of 5.18% on a year-over-year basis. The consensus mark for CSCO's fiscal 2025 earnings is currently pegged at $3.79 per share, unchanged over the past 30 days, indicating year-over-year growth of 1.61% [2].

The stock is currently trading above the 50-day and the 200-day moving averages, indicating a bullish trend. However, the clear rejection at a major peak is a red flag that warrants caution in the immediate sessions ahead. Key resistance levels and support levels are now established, with the zone between the day's high of $69.55 acting as a formidable ceiling and the intraday low of $68.60 as the first line of defense [1].

References:
[1] https://thekhabrilal.com/?p=209086
[2] https://finance.yahoo.com/news/cisco-shares-trade-near-52-143100061.html