Why Cisco Is Poised to Outperform

Updated

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 has earned a coveted four-star ranking.

With that in mind, let's take a closer look at Cisco and see what CAPS investors are saying about the stock right now.

Cisco facts

Headquarters (founded)

San Jose, Calif. (1984)

Market Cap

$111.5 billion

Industry

Communications equipment

Trailing-12-Month Revenue

$46.7 billion

Management

Chairman/CEO John Chambers

President/COO Gary Moore

Return on Equity (average, past 3 years)

16.4%

Cash/Debt

$45.0 billion / $16.3 billion

Dividend Yield

Competitors

Alcatel-Lucent

Hewlett-Packard

Juniper Networks


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 11,020 members who have rated Cisco believe the stock will outperform the S&P 500 going forward.

Earlier this week, one of those Fools, EVplusEV, tapped the stock as a particularly solid bargain opportunity:

[Cisco] is cheap at 9x forward estimates vs. its five-year average of nearly 13x. Very strong balance sheet. The company has been cutting costs for years and finally seems poised for growth. Attractive dividend and even appears on the [Magic Formula] screen.

Of course, this short article doesn't even come close to telling the entire story for Cisco. You're in luck, though. The Fool's brand new premium report on Cisco tells all sides of the story for one of the most powerful technology companies in the world. You can grab your copy now, which comes with free updates for 12 months, by just clicking here.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article Why Cisco Is Poised to Outperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Cisco Systems. 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.

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