Cisco Systems
Networking giant Cisco Systems Inc. (NASDAQ: CSCO) has posted a share price decline of about 15.1% over the past 12 months, including a drop of more than 25% since late December. For 2022 to date, Cisco’s share price decline is nearly double the decline in the tech sector as a whole and approaches three times the drop in the S&P 500.
Last week the company confirmed that it was the victim of a cyberattack in May that resulted in the leak of company files on the dark web. On the bright side, the company successfully defended itself against a patent infringement lawsuit in Boston that could have cost the company $371 million.
Analysts are marginally bullish on the stock, with 14 of 29 having a rating of Buy or Strong Buy and 14 more with Hold ratings. At a share price of around $46.60, the upside potential based on a median price target of $52.00 is 11.6%. At the high price target of $73.00, the upside potential is 56.7%.
For Cisco’s fourth quarter of fiscal 2022, analysts expect revenue of $12.78 billion, a decrease of 0.5% sequentially and a drop of 2.7% year over year. Adjusted EPS are forecast at $0.82, down 5.6% sequentially and by 2.4% year over year. For the full fiscal year that ended in July, analysts currently estimate EPS of $3.36, up 4.2%, on revenue of $51.21 billion, up about 2.8%.
Cisco’s stock trades at 13.9 times expected 2022 EPS, 13.1 times estimated 2023 earnings of $3.54 and 12.3 times estimated 2024 earnings of $3.79 per share. The stock’s 52-week range is $40.82 to $64.28. Cisco pays an annual dividend of $1.52 (yield of 3.26%). Total shareholder return over the past year was negative 15.1%.
SQM
Sociedad Química y Minera de Chile S.A. (NYSE: SQM) is a specialty chemicals company that produces a variety of raw materials including lithium. SQM, as it is commonly known, has more than doubled its share price over the past 12 months and is trading very near its 52-week high set in late May. For the year to date, the stock is up nearly 360%. While demand for lithium remains strong, SQM’s problem will be keeping up with that demand. Last year, the company produced about 19% of global lithium output.
Of 16 brokerages covering the stock, 10 have a Buy or Strong Buy rating and four have a Hold rating. At a share price of around $111.40, the stock has outrun its median price target of $110.00. Based on the high price target of $136.00, the upside potential is 22%.
First-quarter revenue is forecast at $2.34 billion, up almost 16% sequentially and by 300% year over year. Adjusted EPS are forecast at $3.15, up 5.7% sequentially and more than 900% higher year over year. For full fiscal 2022, analysts expect SQM to report EPS of $11.42, up nearly 500%, on sales of $9.3 billion, up almost 225%.
SQM stock trades at 9.8 times expected 2022 EPS, 10.8 times estimated 2023 earnings of $10.30 and 10.3 times estimated 2024 earnings of $10.84 per share. The stock’s 52-week range is $46.13 to $115.76. The company pays an annual dividend of $11.15 (yield of 10%). Total shareholder return over the past year was 113.8%.
Originally posted at 24/7 Wall St.
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