NASDAQ:CSCO

Cisco (CSCO)

114.17
+1.41 (1.25%)
as of Jul 24, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconJul 25, 2026, 12:00 am

This summary was created by AI, based on 16 opinions in the last 12 months.

Cisco (CSCO-Q) is witnessing an anticipated growth due to a much-needed refresh in its network technology and security technology. Experts highlight the company's strategic cash reserve utilization through share buybacks, though this has introduced a slight increase in debt levels. Analysts commend Cisco's ability to achieve encouraging earnings, exceeding expectations in recent quarters, and the strong demand for its products, driven by the AI boom and data center needs. Despite some concerns about high expectations and competition, Cisco’s robust capital allocation and expected revenue growth positions it as a compelling investment choice. However, there are also cautionary notes regarding the company’s valuation and market performance relative to growth in the sector.

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Consensus
Hold
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Valuation
Fair Value
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ADI
PAST TOP PICK
(A Top Pick Jan 23/08. Down 29.3%.) This should be the golden era of the Internet/broadband. Housing bubble and collapse really hurt the deployment. Moving more into the consumer market now. Has the cash to ride out the problems. Still a Buy.
TOP PICK
Has $25 billion in cash, which is about a quarter of their market cap. Their competition is in total disarray and they are able to make some good acquisitions.
BUY
Will be here 5 years from now and will have growth. Net cash on the balance sheet works out to be about $5 a share. Pretty close to a floor. Will be one of the prime beneficiaries when confidence comes back into the market. Should be able to grow its top line at a 2.5X multiple.
COMMENT
In past recessions have acquired companies at cheap valuations and integrated them very well. Even though they guided down for the 1st quarter and pulled guidance for the rest of the year, stock was up significantly. Margins are still quite strong. Well positioned for the other side of the recession.
TOP PICK
(A Top Pick Dec 6/07. Down 42%.) Dominant market share in IP. Internet is absolutely essential for the functioning of the business and consumer worlds. $20 billion cash on the balance sheet so will be able to make necessary acquisitions. Very cheap at 10 X next year's earnings. ROE 20% to 25% consistently over the last decade.
TOP PICK
Tech world will have a difficult time. Trading around 11X earnings. One quarter of their market cap is in cash. Has made some very astute acquisitions. Competition is falling by the wayside.
PAST TOP PICK
(A Top Pick Dec 6/07. Down 39%.) Sold his holdings in July. Out of all techs and a lot of US stocks because they didn't pay dividends and was worried about multiple compression.
TOP PICK
$27 billion in cash and the market cap is $100 billion. Getting stronger in this difficult environment because competition is in terrible shape.
BUY
Were able to make very good acquisitions and grow their product range. Expect they will be able to maintain their margins. Trading at 10X earnings. Lots of free cash flow and good balance sheet.
DON'T BUY
Technology is the industry that is most sensitive to the closing off of corporate credit in the US. Most of the big-ticket items that go into technology or rooms ultimately drive this company in a communication, router, etc. sense. The problem is starting to unwind and this company will probably respond rapidly. Will be pretty difficult to make any money here right now.
COMMENT
Microsoft (MSFT-Q), Cisco (CSCO-Q) and Intel (INTC-Q) are probably going to weather the downturn relatively well. They are all effectively utilities and have significantly free cash flows with little or no debt.
PAST TOP PICK
(Top Pick Oct 4’08, Down 6.7% with stop, otherwise Down 45%) Does not pass current tests: Earning revisions started to turn lower. Does not have a low economic sensitivity, nor a lower exposure in a slow down in global growth.
DON'T BUY
(Market Call Minute.) Model price of $24.80. 5% positive differential is not enough.
BUY
Probably the best placed of the equipment suppliers in terms of the Internet global transformation. However, pricing power is a big negative in this industry.
PAST TOP PICK
(A Top Pick Aug 9/07. Down 29%.) Got stopped out at about $28.
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