Based on the aggregated intelligence of 165,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, networking giant Cisco Systems
With that in mind, let's take a closer look at Cisco's business, and see what CAPS investors are saying about the stock right now.
Cisco facts
Headquarters (Founded) |
San Jose, California (1984) |
Market Cap |
$130.1 billion |
Industry |
Communications equipment |
Trailing-12-Month Revenue |
$37.7 billion |
Management |
CEO John Chambers |
Return on Equity (Average, Past 3 Years) |
21% |
Compound Annual Revenue Growth (Over Past 3 Years) |
4.1% |
1-yr performance |
13.5% |
Cash/Debt |
$39.1 billion / $15.2 billion |
Competitors |
Hewlett-Packard |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 95% of the 9,163 members who have rated Cisco believe the stock will outperform the S&P 500 going forward. These bulls include KarlBob43 and JustHanginOut.
Last week, Karlbob43 noted how Cisco tended to overdeliver:
Somehow Cisco always seems to give conservative forecasts and then goes on the beat them. They are best in class with a smart management team and lots of cash. The present forecast may be correct for the short term due to the turmoil in Europe, but $32/share in two years is not out of the question.
Last month, JustHanginOut made a similar pitch and urged Fools to look at Cisco over the long term:
So the stock gets pounded right after the company beats earnings and issues conservative guidance. While I hate being on the losing end of a vicious sell-off, I happen to think this is very healthy for a company particularly one that is as strong as Cisco. The way I see it, Cisco is the dominant player in a growing sector and will continue to lead this recovery despite the minor setback.
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