Cisco Stock Predicted for Near 7% Rally Ahead of Earnings Release
Cisco Systems (CSCO) is about to release its fiscal Q4 earnings after market close, and investors are eagerly anticipating the results. Options traders believe that the quarterly print will be a significant tailwind for CSCO stock, driving it further up. According to Barchart data, the put-to-call ratio of 0.4x on contracts expiring Aug. 14 suggests a bullish skew, with an upper price set at $132.52 indicating potential for a nearly 7% rally.
The technical setup also looks promising, with CSCO stock trading more than 50% above its starting price in 2026 and remaining handily above its major moving averages (MAs). The RSI is in the early 60s, signaling intense buying pressure. Barchart has an average '88% BUY' opinion on Cisco Systems heading into its Q4 print.
CSCO shares are not cheap, with a forward price-to-earnings multiple of around 30x. However, the company's growth trajectory justifies this valuation premium, and earnings per share (EPS) are expected to increase by over 100% year-over-year to $0.35 in Q4. Additionally, Cisco pays a healthy dividend yield of 1.36%, making it an attractive long-term holding.