A Careful Analysis Of Cisco Systems, Inc. (CSCO), Darden Restaurants, Inc. (DRI)

The shares of Cisco Systems, Inc. (NASDAQ:CSCO) dropped by -3.19% or -$1.58 from its last recorded high of $49.47 which it attained on March 10 to close at $47.89 per share. Over the past 52 weeks, the shares of Cisco Systems, Inc. has been trading as low as $40.19 before witnessing a massive surge by 19.16% or $7.7. This price movement has led to the CSCO stock receiving more attention and has become one to watch out for. It jumped by 0.65% on Tuesday and this got the market excited. The stock’s beta now stands at 1.19 and when compared to its 200-day moving average and its 50-day moving average, CSCO price stands 6.37% above and 6.03% above respectively. Its average daily volatility for this week is 1.68% which is more than the 1.51% recorded over the past month.

Cisco Systems, Inc. (CSCO) rose 1.33% this week, a trend that has led to both investors and traders taking note of the stock. Over the past one year, the equity price has embarked on a rally that has seen it rise 21.15% and is now up by 10.52% since start of this year. A look at its monthly performance shows that the stock has recorded a 10.12% gain over the past 30 days. Its equity price dipped by -1.14% over the past three months which led to its overall six-month increase to stand at 9.39%.

Experts from research firms are bullish about the near-term performance of Cisco Systems, Inc. with most of them predicting a $52.64 price target on a short-term (12 months) basis. The average price target by the analysts will see a 9.92% rise in the stock and would lead to CSCO’s market cap to surge to $240.56B. The stock has been rated an average 2, which roughly stands towards the bullish end of the spectrum. Reuters looked into the 31 analysts that track Cisco Systems, Inc. (NASDAQ:CSCO) and find out that 10 of them rated it as a Hold. 21 of the 21 analysts rated it as a Buy or a Strong Buy while 0 advised investors to desist from buying the stock or sell it if they already possess it.

A look at CSCO technical analysis shows that its 14-day Relative Strength Index (RSI) is in a neutral zone after reaching 62.75 point. Its trading volume has lost -1963451 shares compared to readings over the past three months as it recently exchanged 23536549 shares. This means there is reduced activity from short-term traders as per session, its average trading volume is 25500000 shares, and this is 0.92 times the normal volume.

The price of Darden Restaurants, Inc. (NYSE:DRI) currently stands at $111.51 after it went up by $1.22 or 1.11% and has found a strong support at $110.86 a share. If the DRI price drops below that critical support, then it would lead to a bearish trend. In the short-term, a dip below the $110.21 mark would also be bad for the stock as it means that the stock would plunge by 1.17% from its current position. However, if the stock price is able to trade above the resistance point around $111.85, then it could likely surge higher to try and break the upward resistance which stands at $112.18 a share. Its average daily volatility over the past one month stands at 1.79%. The stock has plunged by 0.87% from its 52-weeks high of $110.545 which it reached on Sep. 20, 2018. In general, it is 26.12% above its 52-weeks lowest point which stands at $82.38 and this setback was observed on Feb. 04, 2018.

Analysts have predicted a price target for Darden Restaurants, Inc. (DRI) for 1 year and it stands at an average $119.64/share. This means that it would likely increase by 7.29% from its current position. The current price of the stock has been moving between $110.545 and $111.53. Some brokerage firms have a lower target for the stock than the average, with one of them setting a price target as low as $94. On the other hand, one analyst is super bullish about the price, setting a target as high as $136.

The DRI stock Stochastic Oscillator (%D) is at 89.67%, which means that it is currently overbought and its prices could dip very soon. The shares P/S ratio stands at 1.66 which compares to the 3.13 recorded by the industry or the 129.74 by the wider sector. The stock currently has an estimated price-earnings (P/E) multiple of 17.61, which is lower than the 23.39 multiple of 12-month price-earnings (P/E). The company’s earnings have gone up, with a quarterly increase rate of 18.2% over the past five years.

Analysts view Darden Restaurants, Inc. (NYSE:DRI) as a Buy, with 2 consensus rating. Reuters surveyed 26 analysts that follow DRI and found that 8 of those analysts rated the stock as a Hold. The remaining 18 were divided, with 17 analyst rating it as a Buy or a Strong Buy while 1 analysts advised investors to desist from buying Darden Restaurants, Inc. (DRI) shares or sell it if they already own it.