Jay Woods, a market strategist at Freedom Capital Markets, is optimistic about Cisco's stock performance, predicting it could rise to between $110 and $120 within the next quarter, representing a potential increase of over 24% from its recent closing price of $96.57. This forecast comes ahead of Cisco's earnings report scheduled for after the market closes on Wednesday.
Woods noted that while Cisco has seen a year-to-date increase of 25%, it experienced a significant drop of 12% last quarter following a disappointing earnings report, which raised concerns about profit margins related to memory spending. He identified $90 as a minor support level for the stock, with $82 serving as a more substantial support level.
He suggested that if Cisco's stock were to drop to $82, it could present a good buying opportunity. Additionally, Woods mentioned another stock to watch this week, Oklo, which could gain momentum if it surpasses its 200-day moving average. He also highlighted the importance of upcoming CPI and PPI data, which could positively influence market conditions following April's jobs report