On Wednesday May 17 Cisco Systems will announce its latest earnings. Cisco’s primary business is in networking and telecommunication  products and solutions. 

Its products include routers, switches, wireless access points, network security devices etc.  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 the US enters into a hard recession and that impacts stocks. 

Remember, don’t just trade it, but Seasonax it!