5-Star Stocks Poised to Pop: Cisco Systems
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, networking giant Cisco Systems (NAS: CSCO) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Cisco's business and see what CAPS investors are saying about the stock right now.
Cisco facts
Headquarters (founded) | San Jose, Calif. (1984) |
Market Cap | $89.1 billion |
Industry | Communications equipment |
Trailing-12-Month Revenue | $45.6 billion |
Management | Chairman/CEO John Chambers |
Return on Equity (average, past 3 years) | 15.9% |
Cash/Debt | $48.4 billion / $16.4 billion |
Dividend Yield | 1.9% |
Competitors | Alcatel-Lucent |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 95% of the 10,859 members who have rated Cisco believe the stock will outperform the S&P 500 going forward.
Recently, one of those Fools, mwlove, tapped the stock's recent pullback as a solid bargain opportunity:
Cisco is no longer an innovator, but it does big business and still dominates the router market. It also has enough cash to buy innovation via takeovers. It's back to be priced for disaster, when in fact its corporate overhaul is nearly complete. It's not going to light up the night sky, but Cisco can be a solid performer over the next few years.
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Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.
At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Cisco Systems. The Fool owns shares of Apple. Motley Fool newsletter services have recommended buying shares of Apple. Motley Fool newsletter services have recommended creating a bull call spread position in Apple. The Motley Fool has a disclosure policy.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
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