Markets plunged in the last week. The S&P 500 jumped past 2 standard deviations of the moving average in the week before (meaning markets were getting a little hot). Historically, this and a couple other indicators signal, at the very least, a shorter term downturn.
Dow Jones 30: 34,382.13 (-1.14%, year-to-date: 12.34%)
S&P 500: 4,173.85 (-1.39%, year-to-date: 11.12%)
Nasdaq: 13,429.98 (-2.34%, year-to-date: 4.20%)
To mask or not to mask
Theme parks across the U.S. are starting to take the foot off of the gas pedal of mask mandates. Disney World and Universal Studios is keeping masks mandatory for rides or indoor parts of the park.
Something for something
President Biden issued a stern warning to people collecting unemployment while refusing suitable job offers to "take the job or lose their unemployment benefits". Some of the checks are big enough to incentivize people not to work and just pocket the money while doing other things.
Pay the piper
The week before, Colonial Pipeline was held hostage by hackers who demanded a ransom or else face a disabled operation. They decided to cough up the cash after a six-day shutdown. How much did they fork over? Just about $5 MILLION. Those hackers really did a number on them.
We're still looking at the current slew of companies reporting earnings:
Home Depot (HD) on 18th May 2021
Walmart (WMT) on 18th May 2021
Cisco Systems (CSCO) on 19th May 2021
Salesforce.com (CRM) on 27th May 2021
Cisco Systems (CSCO)
Let's take a look at Cisco's fundamentals this time around.
Annual Top-Line Revenue:
Last 4 Earnings Result (from most recent):
Historical Stock Returns:
As a part of the Dow 30, consideration for including Cisco in portfolios is reasonable enough. Cisco has NOT recovered from the drop off of their all time high of nearly $58 back in July of 2019. It's definitely a slow moving investment so it would be advantageous to proceed with caution. Despite beating the last four estimates, Cisco's encountered a fair bit of trouble gaining traction in a market where other securities are excelling.
Who competes with CSCO?
Cisco's competitors are Qualcomm (QCOM), Juniper Networks (JNPR), Palo Alto Networks (PANW), and Amazon's AWS division (AMZN).
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- Call to Leap Team