Cisco Systems Corporation:
Today, May 19, 2021, Cisco Systems Inc. (#Cisco) – one of the US multinational technology companies located in California – will announce its earnings report after the market closes.
According to Zack’s investment research and based on ten analytical forecasts, the consensus estimate of earnings per share for the quarter was $ 0.74, and earnings per share for the same quarter of last year was $ 0.72.
In February, Cisco released its second-quarter earnings report for the period ending January 23, 2021. The company reported $ 12.0 billion in revenue and GAAP net income of $ 2.5 billion, or $ 0.60 per share. Net income of $ 3.4 billion under non-GAAP accounting principles, or $ 0.79 per share.
Cisco Technical Analysis:
Cisco share, on a weekly basis appears in a bullish channel with the beginning of the current year to reach 53.27, that level that turned from support to resistance after it made two consecutive highs in 2019 and then two lows in 2020.
The price chart on a weekly frame shows the 25-day MA broke and surpassed the 50-day MA (yellow) on February 7, 2021, at a price of 43.99. While the MACD shows in the underside of the chart that its 25-SMA broke and crossed the 50 day moving average earlier and more precisely in November 2020 as the two moving averages have started to ascend since then.
Note: Reading Relative Strength Index (RSI): The Relative Strength Index (RSI) is a popular momentum indicator used in technical analysis to gauge the strength of a recent price change and represent this reading on a line chart that fluctuates between 0 and 100. The 30 reading on the downside indicates the price has fallen too much It becomes oversold, and is likely to reverse or correction. On the upside, if the indicator reading rises to 70, this indicates overbought, or overbought, and price reversal or a correction may occur. Many traders use the Relative Strength Index (RSI) to help make an appropriate decision: Should one continue or exit a trade? And as shown in the previous figure for the share price on an hourly timeframe, that the index has been on the rise since the end of last year and continued to rise with the beginning of 2021 until it reached on the 16th of this month to 65.54.
Target Company:
Today, we also expect the release of the earnings report for the fiscal quarter ending last April for the company (#Target) – which is the largest retailer in the United States and is located in Minneapolis, as it is one of the components of the USA500 Index – before the market opens.
According to Zack’s investment research and based on 12 analytical forecasts, the consensus estimate of earnings per share for the quarter was $2.2, and the earnings per share for the same quarter of last year was $0.59.
The following figure shows us a graph of the estimated earnings per share over the last, current and next year quarters, and the amount in them; The convergence of the expected is evident in the second quarter of 2020 and also in the first quarter of 2021, while the real percentages vary from the expected in the third and fourth quarters of last year by a difference of approximately $1 and $2.
Source: https://www.nasdaq.com/market-activity/stocks/tgt/earnings
Target Technical Analysis:
Target’s share price movement appears on a weekly basis, in an upward trend from the beginning of 2020 until it reached 207.07.
The chart above shows that the 25-day MA and the 50-day MA extend their upward direction, with the 25-day MA exceeding the 50-year MA, while the MACD is on the downside something that confirms that overtaking despite the 50-period being flirting with it and being close to it.
On a 1-week timeframe, the RSI readings indicate several surpasses of the 70 level at the end of last year, and with the beginning of 2021, the index reading has now decreased to 63.28 after it exceeded the 70 at the beginning of May 2021.
Lowes Company:
Lowe’s quarterly earnings report is due to be released today Wednesday May 19 2021 – the retail home improvement company – reported a $ 1.33 per share gain for the quarter, beating analyst estimates of $ 1.21 by $ 0.12. The company had revenue of $ 20.31 billion for the quarter, compared to analyst estimates of $ 19.54 billion. The Louise Companies made $ 5.72 per share over the past year and currently have a P / E ratio of 27.3.
Lowes Corporation Technical Analysis:
On a weekly basis, in the previous figure, Louise’s share price is moving in an ascending channel, reaching its maximum high at the beginning of 2021, near 212.00, and then declining again to 193.39. As shown in the following figure, the 25-SMA crossed the 50-SMA while the MACD confirmed this bullish momentum, despite the pullback seen at the end of 2020 and the beginning of the current year.
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Eslam Salman
Regional Market Analyst
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