
NASDAQ:CSCO
This summary was created by AI, based on 16 opinions in the last 12 months.
Cisco (CSCO-Q) has seen a significant increase in stock performance, up 62% this year and recently reporting better-than-expected earnings and revenue. The company's latest quarterly results showed earnings of 1.06 USD per share, surpassing estimates, alongside a remarkable jump in social media mentions. Analysts express optimism around Cisco’s ability to benefit from data center demand, especially following its acquisition of Splunk, which has boosted its cybersecurity business. While a few experts mention concerns regarding its growth potential compared to competitors in the space, many believe the stock is consolidating and poised for further gains. Current price targets vary, but general sentiment suggests a cautious but positive outlook as the stock approaches its previous highs.
Remains a stock that performs in a weak economy, which he expects for late this year. Since 1990, has outperformed in recessions. Subscription revenues now stand at 43% of overall and growing faster than overall. It's resilient. Valuation is fair and pays a decent dividend.
He divides tech into two groups. One has high multilples and high growth with less profitability, which can cause difficulties. The other comprises value type stocks which are less impacted by rising rates. An example of this is Cisco at 14X earnings which it has grown consistently. It also has a growing dividend, now at about 3%. Not a big growth stock though. His company has only a 7% exposure to tech.