- Trump tariff news, U.S. inflation data, and retail sales will be in focus this week.
- Buy Cisco: Robust momentum in networking and security, accelerating AI/cloud adoption, and positive analyst outlooks make Cisco’s Q4 report a strong upside opportunity this week.
- Sell Deere: Structural sector headwinds, cost inflation, and weak demand create earnings risk for Deere—suggesting this is a stock to avoid or reduce exposure as it reports.
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Stocks on Wall Street closed higher on Friday, with the reaching a fresh record, as investors were optimistic about potential interest rate cuts. It was the Nasdaq’s 18th record closing high for 2025, with the tech-heavy index now up about 11% for the year so far. The ended just shy of a record closing finish.
Source: Investing.com
The three major indexes registered solid gains for the week. The 30-stock rose about 1.4%, the benchmark S&P 500 climbed 2.4%, and the tech-heavy Nasdaq added 3.9%.
More volatility could be in store in the week ahead as investors assess the outlook for the economy, inflation, interest rates and corporate earnings amid ongoing trade tensions.
On the economic calendar, most important will be Tuesday’s U.S. consumer price inflation report, which is forecast to show headline annual CPI rising 2.8% year-over-year in July.
Source: Investing.com
The CPI data will be accompanied by the release of the latest figures on producer prices, which will help fill out the inflation picture. Retail sales and several manufacturing-related reports also are on tap.
Meanwhile, the earnings season continues, with Cisco (NASDAQ:), CoreWeave (NASDAQ:), Circle Internet Group (NYSE:), Applied Materials (NASDAQ:), Deere (NYSE:), and AMC Entertainment (NYSE:) on tap this coming week.
Regardless of which direction the market goes, below I highlight one stock likely to be in demand and another which could see fresh downside. Remember though, my timeframe is just for the week ahead, Monday, August 11 – Friday, August 15.
Stock To Buy: Cisco
Cisco stands out as a promising buy, with expectations of solid earnings underpinned by its strong position in the networking hardware and software market. The company has demonstrated resilience and growth, particularly in AI-driven infrastructure and security, making it an attractive pick for this week.
CSCO is scheduled to deliver its fiscal fourth quarter update after the closing bell on Wednesday at 4:05PM EST. Market participants predict a sizable swing in CSCO stock after the print drops, according to the options market, with a possible implied move of +/-5.5% in either direction. Shares gapped up 4% after the last earnings report in May.
Source: InvestingPro
Consensus estimates call for Cisco to post adjusted earnings per share of $0.98, up 12.6% from EPS of $0.87 in the year-ago period. Revenue is forecast to increase 7.4% annually to $14.6 billion, driven by strong demand for AI and security solutions.
Analyst sentiment has been notably positive heading into the print. According to InvestingPro data, 15 of the last 16 analyst revisions have been to the upside, highlighting confidence in Cisco’s continued expansion.
The company’s shift toward subscription-based software and services is providing a steady stream of recurring revenue, improving predictability and profitability. Additionally, Cisco’s Splunk (NASDAQ:) acquisition and investments in AI-driven networking solutions are expected to boost revenue and margins.
Source: Investing.com
Cisco’s stock has been on a tear, hitting a series of fresh 52-week highs in recent sessions. CSCO closed at $71.79 on Friday, the strongest level since April 2000. Shares are up 20% in the last three months, signaling powerful momentum heading into earnings.
CSCO is flashing technical strength across every major timeframe, with a 67.6 RSI (daily), all moving averages on “Buy,” and daily/weekly technical summaries both shouting “strong buy.”
Additionally, InvestingPro’s AI-powered models rate Cisco with a “GOOD” Financial Health Score of 2.53, reflecting its strong profit metrics and efficient operations.
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Stock to Sell: Deere
In contrast, Deere is facing potential headwinds this week as the agricultural equipment maker’s latest earnings and guidance will underwhelm investors due to weakening industry demand trends and broader economic headwinds affecting farming operations.
Deere’s fiscal third quarter report is set to come out before the opening bell on Thursday at 6:30AM ET and results are likely to take a hit from slowing global agricultural machinery demand amid declining crop prices and higher input costs.
Analysts have grown increasingly bearish on DE ahead of the print, with all 16 of the analysts surveyed by InvestingPro revising EPS estimates downward over the past three months. With implied volatility pointing to a +/-5% stock move post-earnings, the risk of a miss looms large.
Source: InvestingPro
Wall Street expects Deere to report a profit of $4.58 per share, down 27.2% year-over-year from EPS of $6.29 in the year-ago period. To make matters worse, revenue is forecast to fall 9.1% to $10.3 billion, reflecting slowing demand for its wide range of agricultural, mining, and construction equipment amid a soft agricultural commodities market.
Deere’s forward guidance already disappointed last quarter, and there’s a palpable risk that another underwhelming outlook could prompt further downgrades. Proposed U.S. tariffs on Mexico, Canada, and China could further disrupt Deere’s supply chain and increase costs, squeezing margins.
Source: Investing.com
DE stock ended Friday’s session at $510.37, well off its 52-week high of $533.78 but comfortably above the low. Shares tell a more mixed story: the daily RSI is a neutral 49.97, and moving averages are split—short-term bullish but the 50-day simple MA is on “Sell.”
It is worth noting that Deere holds a 2.18 Financial Health Score, marked as “FAIR”, reflecting concerns around declining profit and sales growth prospects. Moreover, the company faces challenges from rising input costs and supply chain disruptions, which are likely to further pressure its margins.
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Disclosure: At the time of writing, I am long on the S&P 500, and the via the SPDR® S&P 500 ETF (SPY), and the Invesco QQQ Trust ETF (QQQ). I am also long on the Invesco Top QQQ ETF (QBIG), Invesco S&P 500 Equal Weight ETF (RSP), and VanEck Vectors Semiconductor ETF (SMH).
I regularly rebalance my portfolio of individual stocks and ETFs based on ongoing risk assessment of both the macroeconomic environment and companies’ financials.
The views discussed in this article are solely the opinion of the author and should not be taken as investment advice.
Follow Jesse Cohen on X/Twitter @JesseCohenInv for more stock market analysis and insight.