Cisco Systems will announce its latest earnings today. Cisco’s primary business is in networking and telecommunications products and solutions. Its products include routers, switches, wireless access points, network security devices, and other network infrastructure equipment. Cisco also provides software solutions for network management, collaboration, security, and analytics.

Cisco has a diversified business portfolio, which allows the company to manage risk during recessions. Cisco has expanded beyond its core networking business and into new areas such as security, cloud computing, and Internet of Things (IoT) technology. By diversifying its product and service offerings, Cisco can rely on different revenue streams to offset the impact of a recession on any one area of its business.

Looking at the seasonal period ahead for Cisco you can see that the summer period ahead tends to be weaker. However, that weakness is replaced by a strong end to the year. So, does that mean any dips lower are opportunities to buy Cisco systems? During economic downturns, Cisco has historically focused on cutting costs, reducing its workforce, and improving operational efficiency. This approach helps the company to weather the recession and remain profitable.

Major Trade Risks: The major trade risk here is if the US enters into a hard recession impacting stocks.

HYCM clients can access the Seasonax product in order to analyse over 25,000 currency pairs, indices, commodities, as well as individual stocks. Please contact your account manager for a free trial. Certain products & services mentioned herein may or may not be available to all clients depending on which HYCM Capital Markets Group entity their trading account(s) adheres to.