Cisco Systems Corporation:
Today, May 19, 2021, Cisco Systems Inc. (#Cisco) – a US multinational technology company 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 is $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, and net income of $3.4 billion under non-GAAP accounting principles, or $0.79 per share.
Cisco Technical Analysis:
Cisco shares, on a weekly basis, appear to have been in a bullish channel since the beginning of the current year, reaching 53.27, a 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 the weekly time frame shows the 25-day MA broke and surpassed the 50-day MA (yellow) on February 7, 2021, at a price of 43.99. The MACD meanwhile shows that its 25-SMA broke and crossed the 50 day moving average in November 2020 as the two moving averages have started to ascend since then.
Note (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 If it becomes oversold, it is likely to reverse or correct. On the upside, if the indicator reading rises to 70, this indicates that it is 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 the trade? As shown in the previous figure for the share price on an hourly timeframe, the index has been on the rise since the end of last year and continued to rise since the beginning of 2021 until it reached 65.54 on the 16th of this month.
Target Company:
Today, we also expect the release of the earnings report for the fiscal quarter ending last April for the company Target (#Target) before the market opens. Located in Minneapolis, Target is the largest retailer in the United States and one of the components of the USA500 Index.
According to Zack’s investment research and based on 12 analytical forecasts, the consensus estimate of earnings per share for the quarter is $2.2, and the earnings per share for the same quarter of last year was $0.59.
The following figure shows a graph of the estimated earnings per share over the last, current and next year quarters; 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, on a weekly basis, appears to have been 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 8in the MACD indicator as well, while the MACD is on the downside, something that suggests low momentum despite rally.
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 70 at the beginning of May 2021.
Lowes Company:
Lowe’s quarterly earnings report released today Wednesday May 19 2021 – the retail home improvement company’s net earnings rose to $2.32 billion, or $3.21 per share, from $1.34 billion, or $1.76 per share, a year earlier. Analysts had expected a profit of $2.62 per share.
Total net sales at Lowe’s rose 24.1% to $24.42 billion in the first quarter ended April 30, beating estimates of $23.86 billion, according to IBES data from Refinitiv.
Lowes Corporation Technical Analysis:
On a weekly basis, in the previous figure, Lowe’s share price has been 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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