Cisco has been moving from a hardware company to a software one over the last half dozen years, the CEO to Cramer. Many technology transitions are happening, he said, such as to 5G wireless, Wi-Fi 6, and hybrid working -- and all can benefit Cisco.
A number of analysts called out Cisco for declining gross margins, but Robbins said that the company will continue to invest for growth. It will also invest where it sees the most opportunity, which is why the company's estimates for margins remained in line with their earlier forecasts.
In this weekly Japanese candlestick chart of CSCO, below, we can see a potential reversal pattern in August. Reversals in candles can be a change in trend from up to down, but they can also be a change from up to side. CSCO is still above the rising 40-week moving average line. The weekly OBV line is positive and the MACD oscillator too.
In this daily Point and Figure chart of CSCO, below, we can see a price target in the $64 area.
In this weekly close only Point and Figure chart of CSCO, below, in the $70 area.
Bottom line strategy: Traders who are long CSCO should continue to hold those positions. Our targets remain $64 and then $70 and our stop is $53.