How to Trade Cisco (CSCO) Stock: Trading Guide 2022

As societies continue to adjust to living with lesser physical contact, companies which provide solutions on that need for connectivity will likely continue to be favorable. And CSCO is one of those established names doing just that.

If you want to participate in a company which has a long track record of delivering innovative and timely solutions, then this article is for you. 

Although software technology companies have been the crowd-darlings in the market during this volatile year, Cisco, being mainly a hardware company, is still the market leader in the routing and the enterprise switching markets.

And it has flourished as a major supplier of the hardware to construct telecommunication firms.

 

What’s the real story?

The trend of businesses nowadays is to focus on getting their resources on cloud-computing networks.

And this may prove to be a challenge to the business model of Cisco, which is producing internal computer networks for individual enterprises, such as optical networking, routers, switches, etc.

And this was evident in its financial reports.

In the quarter ending July 25, its earnings was down by 4% and the revenue dipped by 9%. And for the current quarter, the revenue is projected to still be lower year-on-year.

 

But remember:

In the longer-run, emphasis on technology may tend to still be prominent as the demand for these enterprise networking products are likely not be negatively affected by the events this year.

The demand might even grow at faster pace eventually, which is driven from the changing practices – such as learning and working from home.

And the company has also been innovating through its acquisitions (more on this below).

 

We can’t emphasize enough:

It is important that you carefully review your over-all financial status first, before participating in the financial markets.

With that out of the bag, provided below is a more detailed set of information on the company and how to buy/sell CSCO shares.

 

 

Why Trade Cisco Stock?

Even if there’s a trend of businesses favoring cloud-centric solutions, the demand for network-related hardware products are not likely to go away.

With the emphasis on remote work and education nowadays, the demand is still there.

 

And at its current price, Cisco offers a forward P/E ratio of 15, which may indicate that the general pessimism has been factored in by the market.

 

Furthermore...

That also makes it cheaper in value when compared to its software-based technology rival firms.

 

Here’s the deal:

CSCO is also innovating.

The company has already recognized that market shift and has started to diversify through acquiring different companies – which comprise much of Cisco’s recent revenue growth.

Back in 2017, Cisco has acquired AppDynamics, a software maker, for $3.7B. It also bought Broadsoft for $1.9B – to further accelerate the company’s cloud strategy.

In 2019, Cisco bought Duo Security for $2.35 billion, and has agreed to trade Acacia Communications for $2.6 billion.

And for this year, it has acquired a networking intelligence company, ThousandEyes, for around $1 billion.

With its acquisitions of companies like Luxtera, Acacia, and Leaba Semiconductors, Cisco is aiming to establish its market share in the cloud data center market.

 

Let us not forget:

Data centers and internet cloud storage providers also need to upgrade their physical equipment as well.

Cloud service providers are made up of warehouse-sized filled with computer servers (or data centers).

And that is an area where Cisco is likely to target as well.

And its Catalyst 9000 computer network switches are boosting sales growth.

There have been headwinds, but the company is proving that they are positioned for the future, like the way they have positioned in the past – which they have sustained for decades.

Now let us see which platforms provide the best features in trading CSCO shares in the market.

 

eToro

Features:

• Copy investment portfolios of top Cisco traders
• Trade stocks commission-free
• Practice with a free demo account
• No overnight fees
• Risk management tools

 

The company, eToro, is a renowned industry leader in trading stock CFDs. Please do refer to this link here for a more detailed review.

They also were the first ones to introduce the innovative concept of social trading and it currently has the world’s leading social trading network. 

 

How can you actually use this?

Beginners and the more experienced traders alike will find the platform intuitive and easy to navigate around.

At first glance, it is evident that eToro’s platform provide traders with not only more than enough tools to enable them to make informed decisions, but also simple enough to provide them with a platform that enable them to make quick executions.

The social trading element is beneficial to traders, regardless of their level of expertise.

Those who are new in trading could search who the top performers are – compare the numbers and the execution style – then copy their trades afterwards.

And those who are experienced enough will be incentivized when they share their knowledge to their peers.

 

But that’s not all...

No commission fees.

Traders may trade as much as they would like to and they will not be charged additional fees: such as ticket fees, markup fees, or management fees.

They also innovated their social trading component by introducing CopyPortfolios. This feature can be used in a couple of ways:

1. Top Trader Portfolios – Beginners may be able to tap on to the knowledge of their more seasoned peers by copying the latter’s trades.
2. Market Portfolios – Traders may also use this feature by being informed what the strongest sectors in the market are – and which instruments belong in those sectors. Thus, by correlation, the risk-reward ratio for those names which exhibit correlation, is more favorable.

 

Moreover...

eToro is a fully-regulated broker in the different areas where it provides its services.

The company adheres to the following regulatory bodies:

• CySEC – Cyprus Securities and Exchange Commission
• FCA – Financial Conduct Authority
• ASIC – Australian Securities and Investments Commission

 

Plus500

Features:

• Competitive spreads for Cisco
• Trading with as little as $100
• Fast and reliable order execution
• Risk management tools
• Fully regulated by the FCA, CySEC and ASIC

 

Plus500 is an industry leader in providing services to trade CFDs (contracts for differences).

The company offers CFD products for various instruments such as: stocks, options, commodities, ETFs, forex pairs, and indices.

Please proceed here should you are interested to know more about Plus500.

 

Illustrative prices only

 

 

To top it off…

Traders may take advantage of using the leverage that is provided by Plus500, which might go up as high as 1:30.

 

The best part?

Plus500 values integrity. Clients trust them with their money, hence it is regulated by well-known financial entities like:

• Plus500CY Ltd authorized & regulated by CySEC (#250/14).
• Plus500UK Ltd authorised & regulated by the FCA (#509909).
• Plus500SG Pte Ltd, licensed by the MAS (#CMS100648-1) and IE Singapore (#PLUS/CBL/2018).
• Plus500AU Pty Ltd (ACN 153301681), licensed by:
  ASIC in Australia, AFSL #417727, FMA in New Zealand, FSP #486026; Authorised Financial Services Provider in South Africa, FSP #47546. You do not own or have any rights to the underlying assets. Please refer to the Disclosure documents available on the website.

 

Cisco Stock Performance

Fact:

The stock began the year 2020 by closing at $48.42/share; and it is currently trading within a range.

 

Cisco Stock Forecast

Below is an overview of our forecast on CSCO for the near future. 

 

 

2020: Battling the Competitors

Through its acquisitions, Cisco has slowly been building and accelerating its push towards the cloud service industry, which has been the recent trend.

 

2021: The Transition Continues

Since it has already established themselves as a leader in the routing and the enterprise switching industry, it is still likely to continue its acquisitions to establish their market share in the data center industry.

 

How to Trade Cisco Stock?

Simply follow the steps below and you're good to go:

1. Open an account with an online broker.

   For you to trade Cisco stock and other company shares, first you need to open an account with a brokerage which offers a platform for trading.

   Signing-up for an account only takes a few minutes to accomplish and after completing this process, you need to make a deposit so you can start investing.

 

2. Open your broker's trading platform.

   Let's say you have opened an account with a specific brokerage and you have already funded it. The next step to do is to open their platform to start trading.

   

   eToro trading platform

 

3. Look for the Cisco stock (symbol: CSCO).

   After opening the platform, search for the Cisco stock by using the search bar and entering either "Cisco" or its stock symbol "CSCO".

   

   Searching for Cisco stock on eToro's platform

 

4. Select Trade and set the amount.

   Click on "Trade" and specify the amount that you wish to invest. You may also set several specific parameters depending the features that are offered to you by your broker.

   

   Trading Cisco stocks on eToro's platform

 

5. Execute the order.

   Initiate the trade by executing the order.

   

   Executing order on eToro's platform

 

Should I trade Cisco stock? Cisco has been in a flux with this ongoing trend of companies moving to cloud services. But it is innovating and gaining market share in that industry as well. With its current price, it provides one of the best value trades (in terms of P/E ratio) when compared to the other technology-related software companies.

 

Frequently Asked Questions (FAQ)

How Much is the Cisco Stock?

Here is the current stock market price of   ( )

 

Who Owns the Most Shares of Cisco?

As of June 30th of this year, the top three holders are Vanguard, Blackrock Inc, and SSgA Funds Management, Inc.

 

How Many Outstanding Shares Does Cisco Have?

As of July 31st of this year, CSCO has 4.254 billion shares outstanding.

 

Where Can I Trade Cisco Stock?

You may proceed to start trading CSCO shares now from either of the brokers that have been mentioned above. Open an account with Plus500, or eToro, or even both.