While the stubbornly high inflation and the Fed’s commitment to tame it with interest rate hikes have rattled the stock market, taking a heavy toll on tech stocks, Cisco Systems, Inc. (CSCO) has fared relatively well. Its strong fundamental positioning has helped the stock sustain gains despite the macroeconomic headwinds.
The stock has gained 13.3% over the past six months and 3% year-to-date, closing the last trading session at $49.06. Moreover, it is trading above its 50-day and 200-day moving averages of $48.41 and $45.71, respectively, indicating an uptrend. I think the stock is well poised to maintain its momentum for the reasons I mentioned throughout this article.
