Based on the aggregated intelligence of 170,000-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.
|Headquarters (Founded)||San Jose, Calif. (1984)|
|Market Cap||$96 billion|
|Management||Chairman/CEO John Chambers
CFO Frank Calderoni
|Return on Equity (Average, Past 3 Years)||18.1%|
|Cash/Debt||$40.23 billion / $15.24 billion|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
Just last month, Sparticus501 tapped Cisco as a particularly timely opportunity: "Even though this company took a hit in recent months, it still dominates the router and switch market and will in the future. Right now the stock is cheap."
Cisco even boasts a robust three-year average operating margin of 21.8%. That's higher than that of main rivals Alcatel-Lucent (0.7%), Hewlett-Packard (9.9%), and Juniper (18.1%).
CAPS member marshgerda elaborates on the bargain opportunity:
Unlike many, I do not mind these "out-of-favor" old "new economy" stocks. They will never re-live the go-go days of the late nineties, but nor will they plunge like they did in early 2000s. Cisco is $10 below their 52 week high. They seem to have formed a bottom. Their size gives them a moat. I like the start of a dividend.
Of course what I like the most is the price and the balance sheet. They have about 40 billion (with a b) of cash. ... So they have dry powder to buy companies that can add to their income stream. Backing out the excess cash, I calculate a 12% earnings yield, which is extremely solid.
I will have no trouble sleeping at night holding CSCO.
What do you think about Cisco, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool has created a bull call spread position on Cisco. Alpha Newsletter Account, LLC, owns shares of Cisco. Juniper is a Big Short short-sale selection, and Alpha Newsletter Account, LLC, has opened a short position on it. Try any of our Foolish newsletter services free for 30 days.