NASDAQ:CSCO

Cisco (CSCO)

106.70
-0.27 (0.25%)
as of Sep 25, 2026, 8:00:00 pm Market Open.
489 watching
0
BUY
It's cheap. As subscriptions pick up, the stock will rise--easily a 10% move.
HOLD
Starting to see a sector rotation into growth stories that have more solid fundamentals. Dividend is reasonably attractive, balance sheet is great. Challenge is that market seems to be boom/bust, and there's competition from Europe. Don't chase. If you hold, keep it. Oracle offers more upside.
BUY
Today at investor day, they unveiled bullish long-term sales targets. Last month, they reported a strong quarter and shares jumped to a 20-year high. Since then, it's pulled back a few bucks. But he thinks this has a lot more room to run.
BUY
Morgan Stanley downgraded it yesterday though CSCO reported excellent numbers when it last reported. CSCO hosts an analysts meeting on Wednesday and will likely lead to analyst upgrades.
HOLD
Really likes. Massive free cashflow. Aggressively buys back shares and increases dividend. Becoming more of a SaaS, a positive change, which should increase margins and drive the stock higher.
DON'T BUY
They have not reinvented themselves. They have not restructured. The valuation is reasonable and the dividend is safe. 5G will not fuel future growth for them. He would pass on it.
DON'T BUY

Last year, it suffered from decreased spending and are slowly losing market share. Are transitioning more to a hardware company. It lacks growth. Key customers are telecoms. You can buy a higher-growth, software company like MSFT or Apple, but these are expensive now (wait for a dip).

COMMENT

Must look at it holistically. With proliferation of fibre and densification of optical equipment was a tailwind though this has slowed down. Another aspect is the sanctions that are allowing Cisco to compete when otherwise it would not have been. We have seen big moves from legacy tech due to the broadening of the market. Could see some more upsides, but would look at more mature tech.

HOLD

Won't get into too much trouble holding it over time. He prefers higher growth exposure, such as semis and FANGs. Not too much risk owning it. It's big and established, akin to IBM.

BUY ON WEAKNESS
The street has been wary of this name and was disappointed by its quarterly after hours today, but he sees a bright outlook. This should be a big winner as enterprise computing comes back this year as the economy reopens further. Right now is a classic buy on weakness.
BUY
They report Wednesday. He expects a good quarter. Cisco makes networking hardware and software for big companies.
BUY ON WEAKNESS
Sold in the last week at his price target. Massive supplier into 5G. Fantastic earnings. He'd look to get back in at the mid-40s. You'll probably see an opportunity later this year. Decent dividend yield of 2.8%.
BUY
Pays a decent dividend and trades around 19x PE. It will benefit when 5G comes along. There's a lot of money for broadband growth coming as we transition to 5G networks. Not a pricey stock, but he sees more growth in software stocks. CSCO will do better though given 5G.
PAST TOP PICK
(A Top Pick Feb 25/20, Up 17%) Existed some months ago. Was spinning its wheel. WebEx is a good point, but the hardware side was lacking. There are better opportunities in the technology space.
PAST TOP PICK
(A Top Pick Feb 25/20, Up 11%) Quarter after quarter, it disappoints. Not all divisions are getting traction. There are lots of other opportunities in tech.
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