NASDAQ:CSCO

Cisco (CSCO)

95.72
-7.89 (7.62%)
as of Nov 5, 2026, 9:00:00 pm Market Closed.
489 watching
0
DON'T BUY
In 2000, Cisco stock fell and still hasn't returned to that level. They transitioned from hardware to software like cybersecurity. Their last quarterly earnings were down, because of COVID halting consumer demand. See his top picks for a better stock that offers dividend growth.
DON'T BUY

Recent earnings beat, but the market didn't like it. COVID is hurting them. Their business is focus on on-premise tech while peers are the cloud operators. Cisco is migrating to the cloud late. 14x earnings with a nice dividend, which is enticing, but can they make their growth rate? The risk-reward isn't here. This could turn into an IBM and could take years to turn this ship around. This could be a value trap.

premiumPremium content

Unlock this Panic-proof Portfolio opinion with Stockchase Premium

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly Despite the negative price action following most recent earnings, we see CSCO as a Top Pick -- with upside over 15%. We like the yield and feel the cash flow supports its level and may lead to another increase as it has for the past 9 consecutive years. EPS and revenue both beat analyst expectations. The company is achieving goals of moving to a more subscription based revenue model for its software -- now representing 78% of revenue in that category. Analysts were negative on the next quarter outlook, but that can be attributed to the continuation of the pandemic slowdown of the economy. We would trade this with a relatively tight stop-loss at $40. Yield 2.99% (Analysts’ price target is $49.35)
BUY
Allan Tong’s Discover Picks Cisco makes it to our Top Dividend Stock list. True, this American IT company doesn’t pay a divvy like a Canadian bank, but analysts such as Darren Sissons and Lorne Steinberg expect Cisco’s 3.09% to continue to grow along with the company’s free cash flow. Read Best Dividend Stocks Canada for our full analysis.
HOLD
5G? CSCO has a 14 times PE ratio and 2.8% dividend yield. They have been able to grow by buying a lot of companies. 5G spending may get delayed in to 2021, so this may reduce earnings this year. They have made acquisitions to be able to compete with their peers.
BUY
He owns this in their large cap portfolio. The company is positioning itself well for 5G connectivity. They have had to pivot from being the back bone of the router space to now also be a software company. Webex is a popular video platform during COVID-19. It is not very a very expensive multiple. Only about 3% of their revenue is tied to China. He would be a buyer here.
COMMENT

5G deployment is a key theme for him right now. NOK and CSCO are others in the space. He much prefers ERIC overall -- he thinks it could go to $12 per share.

STRONG BUY
Managers have done a great job morphing into cybersecurity. Yes, Cisco will be impacted by current spending on IT (with flat or slightly declining revenues this year), but Cisco will remain a huge cash flow and dividend grower. There's strong demand for internet security which definitely benefits Cisco.
BUY
They report tomorrow and he expects mixed results, but overall he likes this company. Cisco has suffered a little from the lockdown, but videos shot for interviews are using Cisco equipment. This is a boom for the company.
COMMENT

He does not own AMT today. In 5G, he prefers CSCO and NOK.

PAST TOP PICK
(A Top Pick Mar 04/19, Down 22%) Some cyclicality to its earnings, but will stick with it. They will still buyback stock and increase margins, and it's trading at 13.5x free cash flow (Analysts’ price target is $53.00)
TOP PICK
They are the leader in end to end IT security. There has been a selloff because of a weaker economy. They will raise their dividend double digits until the cows come home. (Analysts’ price target is $51.43)
COMMENT
Problem is all the big techs had a big run. Long-term trajectory is up and to the right. Dividend should slowly grow. A better entry point would make this a core holding. Challenge is they need a new product as a catalyst.
BUY ON WEAKNESS
Fantastic company. Couple of disappointing quarters. Huge amount of free cashflow. Buy on weakness.
TOP PICK
Model price is $65 or 54% upside. (Analysts’ price target is $51.43)
Showing 136 to 150 of 957 entries