Why Cisco Is Poised to Outperform

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, networking giant Cisco Systems (NASDAQ: CSCO  ) has earned a coveted four-star ranking.

With that in mind, let's take a closer look at Cisco and see what CAPS investors are saying about the stock right now.

Cisco facts

Headquarters (founded)

San Jose, Calif. (1984)

Market Cap

 $111.5 billion

Industry

Communications equipment

Trailing-12-Month Revenue

$46.7 billion

Management

Chairman/CEO John Chambers

President/COO Gary Moore

Return on Equity (average, past 3 years)

16.4%

Cash/Debt

$45.0 billion / $16.3 billion

Dividend Yield

 

Competitors

Alcatel-Lucent

Hewlett-Packard

Juniper Networks

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 11,020 members who have rated Cisco believe the stock will outperform the S&P 500 going forward.

Earlier this week, one of those Fools, EVplusEV, tapped the stock as a particularly solid bargain opportunity:

[Cisco] is cheap at 9x forward estimates vs. its five-year average of nearly 13x. Very strong balance sheet. The company has been cutting costs for years and finally seems poised for growth. Attractive dividend and even appears on the [Magic Formula] screen.

Of course, this short article doesn't even come close to telling the entire story for Cisco. You're in luck, though. The Fool's brand new premium report on Cisco tells all sides of the story for one of the most powerful technology companies in the world. You can grab your copy now, which comes with free updates for 12 months, by just clicking here.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


Read/Post Comments (0) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2204750, ~/Articles/ArticleHandler.aspx, 9/21/2014 2:43:07 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 17,279.74 13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASD 4,579.79 -13.64 -0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/19/2014 4:00 PM
CSCO $25.20 Down -0.02 -0.08%
Cisco Systems CAPS Rating: ****
ALU $3.30 Down -0.02 -0.60%
Alcatel-Lucent (AD… CAPS Rating: ***
HPQ $36.79 Down -0.22 -0.59%
Hewlett-Packard Co… CAPS Rating: **
JNPR $22.63 Down -0.16 -0.70%
Juniper Networks,… CAPS Rating: **

Advertisement