Opinions Jim Lebenthal
CiscoCSCOBUYNov 13, 2026
Jim LebenthalStock price when the opinion was issued
As of Nov 13, 2026. Market Open.
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Premium contentOur PAST TOP PICK with CSCO has triggered its stop at $107. To remain disciplined, we recommend covering the position at this time. When combined with previous guidance, this will result in a net investment loss of 7%
Premium contentWe reiterate CSCO as a TOP PICK. The company took $9.3 billion in order from AI infrastructure hyper-scalers in 2026 and management guides $72 billion in total sales next year. It trades at 35x earnings and supports a 27% ROE. Quarterly cash reserves are steady as the company aggressively buys back shares and retires debt. We continue to recommend a stop at $107, looking to achieve $138 -- upside potential of 18%. Yield 1.4%
(Analysts’ price target is $138.43)
Has owned this since 2015 and has outperformed the market at a low beta. It was priced for perfection, so shares fell after they reported. But their topline is growing, the valuation is terrific and they're in the AI space.
Jim LebenthalPremium contentIt recorded record quarterly revenue of $17.25 billion (an 18% year-over-year increase), compared to the $16.82 billion projected by Wall Street analysts. It reported adjusted earnings per share (EPS) of $1.22, surpassing the consensus estimate of $1.17. Management raised its fiscal year 2027 forecasts to a range of $72.2 billion to $73.4 billion, well above market expectations. Social media mentions are up 3,575% in the past 24h.
It reports after the bell. A value name for its cash flow and consistent earnings. They've been talking about their plans, so it has a lot of momentum behind up, up 59% this year.
Brian BelskiIs up 93% this year. Optical is critical to AI infrastructure, like copper once was. The FCC is considering limiting Chinese imports of optical, which means more demand for American names like CSCO.
Joe TerranovaPremium contentA much needed refresh in network technology and security is the reason behind analysts expectations of continued positive growth for CSCO in the next few fiscal years. The company is prudently using some cash reserves to aggressively buy back shares - albeit with slightly more debt. It trades at 36x earnings, 9x book and with a 25% ROE -- demonstrating its ability to defend its value in the market place. We recommend setting a stop-loss at $170, looking to achieve $133 -- upside potential near 18%. Yield 1.4%
(Analysts’ price target is $132.40)Like Apple it was sort of a sleeper last year. It sells processes and analogue chips, very different than GPU's. Is involved in networking products and services. The AI stack explosion needed their products and technology. It is fully priced according to analysts' price targets.
Kim BoltonKudos on that choice, because it's not been a market darling (since the dot-com bubble). Riding coattails of stronger players in the space, catching the halo effect. The old adage: "No one ever went broke taking a profit" -- good risk management.
Prefers, and owns, ANET.
Premium contentIn the last quarter, the company reported 1.06 USD per share, beating the 1.03 USD estimate by 2.42%. Revenue for the same period reached 15.84 B USD, despite the estimate of 15.56 B USD. For the next quarter, analysts expect 1.12 USD in earnings per share and 16.36 B USD in revenue. Social media mentions are up 3,017% in the past 24h.
They reported good earnings, but shares are down now because the street wanted better guidance. No, it shouldn't be a mid/high-20x PE stock, but at the high-teens. Demand is strong. If you don't think the data centre build will suddenly halt, this is a cheap way to play it.