NASDAQ:CSCO

Cisco (CSCO)

95.72
-7.89 (7.62%)
as of Nov 5, 2026, 9:00:00 pm Market Closed.
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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.
BUY
This has been moving up nicely as enterprise 5G is coming. Cisco is transitioning from hardware to more software, and we're reaching the inflection point when the valuation goes higher. It reports Tuesday.
BUY
Pays a 3% dividend and offers a good balance sheet. Be patient. It'll take time to turn around the ship. In fact, you can buy more now.
BUY ON WEAKNESS
Their earnings were not bad, beating earnings. However, they are too enterprise focused and behind the curve. It could change in 2021 as people get back to work. Has started to like it more and the stock is still cheap. Model 5% growth. They are trying to get more into software which is positive.
DON'T BUY

CSCO vs. IBM Missed the boat on cloud, not a great growth rate. Revenue's down. Nice dividend. Doesn't love it, not buying it. For dividends, likes IBM better as its risk/reward is better.

DON'T BUY
It yields 4%. It's an internet of things best suited for next year than this. This is a story for 2021. Trades at 11x earnings. Also, it had a bad quarter and sold off.
SELL
Tech has been on a rip-roaring bull market, yet Cisco just can't get out of its own way. It's close to 52-week low, whereas NASDAQ is close to 52-week highs. If you can't fly with a huge tailwind, you can't fly if things get tougher. Carve laggards out of your portfolio.
BUY ON WEAKNESS

They may not do well in the work-at-home space. This space demands more and more bandwidth and dispersion is greater. Cisco Webex is a competitor to Microsoft Teams. The average ticket for their product is very high and board members are reticent of spending. Once we see more clarity for after the pandemic, it will do well. He believes in the leadership team.

PAST TOP PICK
(A Top Pick Nov 13/19, Down 15%) Very decent provider for 5G. Still likes it. Target of $47.75. Decent valuation of 14x, with a yield of 3.7%. Solid fundamentals. Expanding the business from hardware to software as a subscription. Quite a bit of upside.
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PAST TOP PICK
(A Top Pick Sep 10/20, Down 6.1%)Stockchase Research Editor: Michael O'Reilly CSCO has broken down through our stop-loss at $40. We do not see sufficient new fundamental developments to warrant continuing to hold the position at this time. We are looking for better opportunities elsewhere.
BUY

CSCO vs. ZM Zoom is one of the most expensive stocks at price to revenue, so this is a red flag. Gives him pause. How much future success is already built into the price? An alternative is Cisco, with their add-on to access what Zoom does. CSCO is stable, with a reasonable valuation. Companies eventually will need to invest in switching and routers, and this will come straight Cisco's way.

BUY
He targets $49.12. They've disappointed the last little while. A new CEO came in last year, and he will likely shakes things up. Topline growth should recover by the end of 2020 as more investments are made. Cisco keeps buying back shares, even during the pandemic. It's a yawner now, but should pick up because Cisco is a massive supplier of 5G which is coming.
PAST TOP PICK

(A Top Pick Aug 22/19, Down 10%) Their product that competes with Zoom has done well. The rest of the business is shaky. It's a timing issue. Well positioned for the next 10 years. Not expensive. He'd be a buyer and a holder.

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