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Cisco shares drop for fourth consecutive day amid bearish market

EditorRachael Rajan
Published 10/20/2023, 06:01 PM
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Stocks of Cisco Systems Inc (NASDAQ:CSCO). continued their downward trend on Friday, marking the fourth consecutive day of losses. The company's shares closed at $52.93 in a bearish market that saw the S&P 500 and Dow Jones indices drop by 1.26% and 0.86%, respectively, to 4,224.16 and 33,127.28. This closing price is 92.58% of Cisco's 52-week high, as per InvestingPro data.

Despite the overall market downturn, Cisco's performance outshined other tech giants including Microsoft (NASDAQ:MSFT), which fell 1.40% to $326.67, Amazon (NASDAQ:AMZN), which slid 2.52% to $125.17, and Broadcom (NASDAQ:AVGO), which decreased 1.64% to $853.63.

Trading volume for Cisco was notably high on Friday, exceeding its 50-day average with a total of 22 million shares traded. This activity, although higher than the company's average daily volume of 17.51 million shares as provided by InvestingPro, didn't prevent the company's stock from remaining $5.26 below its 52-week high of $58.19, which was achieved on September 1st, 2023.

In comparison to its peers in the technology sector, Cisco's performance during this bearish period appears relatively resilient despite its four-day losing streak. This resilience could be attributed to the company's strong financial health, as indicated by InvestingPro Tips, which highlight that Cisco holds more cash than debt on its balance sheet and has high earnings quality, with free cash flow exceeding net income.

Investors will be keeping a keen eye on the company's stock as it continues to hover below its annual high. Additionally, they may be interested in the company's upcoming earnings report, due on November 15, 2023. According to InvestingPro, Cisco's P/E Ratio stands at 17.2, and its revenue growth has been accelerating, another key point from InvestingPro Tips. These factors, combined with the fact that Cisco has raised its dividend for 13 consecutive years, could make it an attractive option for investors despite the recent market downturn.

For more insights and tips like these, investors can explore InvestingPro's product, which includes additional InvestingPro Tips.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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