Cisco Systems, Inc. (NASDAQ:CSCO) is one of the stocks in focus on Jim Cramer’s game plan. Cramer highlighted that the stock holds a significant position in the Charitable Trust, as he remarked:
Wednesday night, we find out how Cisco stock’s been been doing. The stock’s been soaring. I don’t know. We have to find out whether this is a company that has got less software, more hardware. In the old days, I used to hope it had more software and less hardware, but it’s still a sizeable position for the Charitable Trust.
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Cisco Systems, Inc. (NASDAQ:CSCO) creates networking, security, and collaboration tools that help organizations stay connected and protected. During the January 14 episode, Cramer noted that the company “came late to the AI party,” as he said:
How about, and this one makes me so happy because it’s a Charitable Trust name, Cisco? Yes, the online networking play is a little different. Cisco spent years struggling to reinvent itself… and admittedly came late to the AI party. The stock didn’t really start running until the second half of 2024. Lately, though, Cisco’s gotten its act together, regularly picking off new clients from its competitors… Even though it took roughly 25 years for Cisco to regain its dot-com era highs. Wow. It was the largest cap stock at one point in the market. The company’s been putting up stellar numbers over the past few quarters. I think it’s finally found its place in the modern world. So what’s happening in the daily chart? Alright, after a strong performance in the first 11 months of last year… this stock got hammered in December, it was really kind of surprising, ultimately, filling in the gap from its big rally in November…
Now, though, Cisco’s started bouncing off its lows, and Lang thinks it’s ready to roar, although the stock has to break through its 50-day moving average first… Could happen. That’s almost two bucks from where it’s currently trading. Of course, the volume trends have been mediocre here, and the on-balance volume is just starting to turn higher after taking a real beating. Still needs to go higher, frankly. Okay, Lang notes that Cisco sold off hard in December on high volume, and that’s usually a real bad sign because volume is like a polygraph in this business. High volume means a move’s telling the truth. However, he thinks that the sell-off has come to an end. Thank heavens, man, because this has been a very tough time for me in the trust with some of my techs, and Cisco became part of it. MACD line is still flashing a sell signal, but Lang believes it’s bottomed.
Basically, he sees Cisco making a run at its downtrend line, and if we get a few good days, the bulls are poised to take control. He’s betting the $74 stock can change toward its old highs around $80 and then charge to, get this, $100. I sure hope he’s right. That’ll be later in the year. We already have a nice gain in trust. But I really am getting greedy. I want more points with CEO Chuck Robbins. Now, I’ve gotta tell you, I think that… [if] we had a little leveling off, I think you buy Cisco right here.
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Disclosure: None. This article is originally published at Insider Monkey.
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