Mike Vinokur
Cisco
CSCO-Q
PAST TOP PICK
Mar 07, 2025
(A Top Pick Jul 05/24, Up 37%)
Splunk acquisition in cybersecurity segment has secured a lot more recurring revenue for the company. Steady eddy. Keeps making good acquisitions and integrating. Good management, balance sheet, and dividend yield.
Not cheap anymore, so he sold on the valuation call. Nothing wrong with the business per se if you have a very long horizon.
Their last quarter beat including growth projections an it's one of the cheapest tech stocks. It lags peers, but it still grows around 5% and trades at 13x PE.
After delivering a blow-out quarter in August, shares jumped 33%. Then they just announced another strong quarter, beating top and bottom and delivering excellent guidance and raising their full-year forecast.
King of the networking stocks. Hit their stride, mainly because of NVDA selling out of Blackwell and H20 and so on. Started beating on top and bottom, raising guidance (even during the tariff time). Pretty fully priced, with a $70.75 price target within 12 months.
Is like Oracle 3 years ago when it was still a database company, building the cloud infrastructure. This is already happening to Cisco. Trades at 16x forward PE, and pays a 3% dividend. Buys back a lot of shares. Is enjoying AI and cybersecurity tailwinds.
Was upgraded today. Trades at 16x PE and a 6% free cash flow yield. Earnings should grow 5-9%. It's been flat for a while, but so was MSFT. Stocks need time to consolidate.
Splunk acquisition in cybersecurity segment has secured a lot more recurring revenue for the company. Steady eddy. Keeps making good acquisitions and integrating. Good management, balance sheet, and dividend yield.
Not cheap anymore, so he sold on the valuation call. Nothing wrong with the business per se if you have a very long horizon.