Cisco Stock May Plunge Despite Bullish Forecasts

Cisco Systems Inc. bulls are forecasting major stock gains but they may stumble badly. Analysts are forecasting the networking company's stock will increase by more than 13%., but that optimism may prove unfounded for a company that's struggling to grow earnings. Cisco's stock has risen by over 36% in the past year, more than double the S&P 500's rise. Shares are already beginning to falter, down by over 6% since the start of May. The stock fell sharply after reporting inline quarterly results and guidance that were not enough to please bullish investors. The technical chart is also weak and suggests shares may drop by about 10%.