Cisco Systems, Inc. (symbol ‘CSCO’) managed to stay afloat their second quarter performance adding around 11% on their share price. The company’s earnings report for the fiscal quarter ending July 2023 is set to be released on Wednesday 16th of August, after market close. The consensus EPS is $0.95 compared to the same quarter of last year at $0.74.
‘As of 30/04/2023, the company’s current ratio is around 140% showing that the company is able to repay its short-term liabilities with the current assets in hand. Also what is important to mention is that the debt-to-equity ratio is near all time low (currently at 16%) indicating that the company’s debt levels are constantly decreasing making it an attractive investment for market participants ’ said Antreas Themistokleous, an analyst at Exness.
On the technical side, the price has been trading in a steady uptrend for the majority of the quarter. Last week, it found resistance on the upper band of the Bollinger bands and has since corrected to the downside while the Stochastic oscillator is still near the extreme overbought levels possibly showing that the bullish momentum might still be valid in the market. The faster-moving averages ( 20 & 50) are trading above the slower 100-day moving average further supporting the narrative that the bulls might still be stronger than the bears.
JD.com, Inc. (‘JD’)
JD.com, Inc. (symbol ‘JD’) share price has incurred losses of around 12% in the second quarter. The company’s earnings report for the fiscal quarter ending June 2023 is set to be released on Wednesday 16th of August, before markets open. The consensus EPS is $0.59 compared to the same quarter of last year at $0.49.
‘The company is not in its best form and this is also supported by some financial figures as of 31/03/2023. Even though EBITDA, which is earnings before interest, taxes, depreciation and amortization, is at $0.936B, a 146.32% increase year-over-year, the net income of the company is $0.912B, a 293.22% decline year-over-year. One factor that could explain this indifference is the high long-term debt that the company has, which is near an all-time high, at $4.27 bn. What this means is that the company is paying large amounts on interest which affects the overall net income.’ said Antreas Themistokleous at Exness.
From the technical analysis perspective, the price is trading in a slightly upward trading channel for the last couple of months. The price found sufficient resistance on the upper band of the Bollinger bands in mid-June and late July without being able to trade outside of it indicating that the volatility in the market for the share of the company has somewhat decreased.
There are some minor indications on the daily chart of a potential move to the upside but they’re not very strong. The Stochastic Oscillator is near the extreme oversold levels potentially pointing to a minor correction to the upside in the near short term while the 50-day moving average is on the move to cross above the 100-day further supporting the narrative of a correction in the market for the share.
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