As a networking giant, Cisco Systems Inc (NASDAQ:CSCO) essentially provides the default plumbing of the internet and enterprise IT. By connecting data centers, branch offices and telecom networks, it plays a critical role in the broader dissemination of information. At the same time, competitive pressures are rising, thus raising questions about the company's valuation. With CSCO stock also flashing a rare bearish signal, traders may be better served — at least for the near term — exercising skepticism.
To be clear, the business itself hasn't broadcasted any overt signs of trouble. In the company's fourth-quarter earnings report — released on Aug. 13 — Cisco posted adjusted earnings per share of 99 cents, beating out analysts' consensus target of 91 cents. In the year-ago quarter, the networking specialist posted earnings of 91 cents per share.
