After publishing Q4 2013 results in line with estimates, on 14 August, Cisco Systems' stock has known a 10% decrease which seems to be unjustified regarding the company's fundamentals.

Indeed, the company is growing with sales that are expected to increase by more than 5% annually during the three coming years. Further, the stock is undervalued with a P/E ratio 2013 at 13.34x compared to 17x for its peers. Finally, analysts continue to revise upward their EPS estimates.

Technically, despite a medium and long term bullish trend, prices are coming back to the USD 23.35 support and the 20-week moving average. This threshold, may facilitate a recovery towards USD 25.3.

The recent unjustified decrease, combined with an interesting technical configuration is an opportunity for a long position. The first objective will be USD 25.3 then USD 26.4. A stop loss must be placed below the support.