Is Cisco Systems Primed for a 20% Pop in 2014?

Cisco Systems (NASDAQ: CSCO  ) ended 2013 as one of the worst-performing stocks in the Dow. Sure, some of that pessimism was warranted, given the networking giant's slowing sales growth. But have investors gone too far in selling off the shares? A bullish piece (registration required) in Barron's magazine says that they have -- and that Cisco shares could jump by 20% this year as a result.

In the video below, Fool contributor Demitrios Kalogeropoulos discusses Cisco's recent struggles and agrees with Barron's conclusion that the stock looks cheap right now. Despite what's sure to be a tough year for the business, Cisco could be a good buy for conservative investors who are looking for dividend income along with a decent chance at long-term capital appreciation.

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Read/Post Comments (4) | Recommend This Article (3)

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  • Report this Comment On January 16, 2014, at 6:17 AM, buffalostars wrote:

    I agree with your point -- they stand the risk of losing out on the industries IT spending over the next 10 years. While heavily invested, I believe this is a good conservative play to put additional cash into play.

  • Report this Comment On January 16, 2014, at 6:38 AM, ForgetGold wrote:

    I bought Cisco at the bottom, it is three of the 10 stocks that I hold that is positive right now,

    I believe it will POP over 20% this year. I am setting my target at 28% growth in price.

  • Report this Comment On January 16, 2014, at 11:08 AM, greffd wrote:

    Cisco's future earnings potential is incredible. There are only a handful of companies positioned to benefit from the IoE. Cisco has the sales channels, brand recognition and is an early entrant into this new and exciting area. Like the Internet, it is difficult to even imagine the potential of this technology and how this will change our lives. We will need common and most importantly secure networks as we bring our homes, autos and wearable devices into a common communication fabric. I see no single vendor better positioned to capitalize on this development. They are working hard to get out in front of this, currently reallocating R&D capital and jockeying to be a thought leader. This stock will explode in 2 years. I have 40% of my portfolio in CSCO and will keep it there unless I see them losing IoE mindshare to new entrants in the market.

  • Report this Comment On January 16, 2014, at 12:21 PM, TMFSigma wrote:

    Wow, @greffd, 40% is a hefty bet on a single stock! But I like that you have identified a reason that you might sell your biggest holding, though. And let me suggest that you try to nail that down to something a bit more tangible. "Losing mindshare" is pretty subjective.




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Demitrios Kalogeropoulos

Demitrios covers consumer goods and media companies for, as well as broader moves in the economy.

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8/28/2015 4:00 PM
CSCO $26.00 Down -0.17 -0.65%
Cisco Systems CAPS Rating: ****