1 Dow Stock Set to Surge?
After looking at each stock on the Dow Jones Industrial (INDEX: ^DJI) average and comparing their current share price to the average analyst price target for the next twelve months Cisco (NAS: CSCO) has a lot of upside potential. Our own Caps community gives the stock a five star rating, and as one of only four Dow stocks trading with a forward price/earnings ratio of less than 10 there are worse places to put your money.
But the company still has many overhangs including slow tech spending and an enormous cash balance overseas which could be subject to repatriation taxes if brought home. The company's recent decision to raise their dividend by 75% could indicate a lack of profitable options for cash deployment.
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The article 1 Dow Stock Set to Surge? originally appeared on Fool.com.Austin Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of F5 Networks. Motley Fool newsletter services recommend F5 Networks. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.