Hold: Cisco Systems
It’s unlikely that Cisco Systems (NASDAQ:CSCO) will ever relive its glory years of the late ’90s and early 2000s, when broadband Internet was becoming the norm and networking equipment was all the rage. But, rumors of Cisco’s death have been greatly exaggerated.
Cisco has finally realized that mobile Internet is the future, and software-based networking will soon upend hardware-based networking. The company has even unveiled a cloud-connection solution to make its way into this market.
Cisco is a little late to the party, and will find that its competition is already entrenched. Nevertheless, Cisco still has a name it can leverage, and its cloud-centric solutions have gotten some traction in the marketplace.
So why just a “hold” rather than a “buy”? As of the latest look, forecasters say earnings will likely grow about 8% this year, and around 6% next year. Not great … but not bad, either. It’s not enough to merit a new position for most growth-seekers, but it’s not tepid enough to merit an exit.
The company also has a penchant for beating estimates — it has topped earnings forecasts in each of the past 14 quarters, even if only by a little each time.
As of this writing James Brumley did not hold a position in any of the aforementioned stocks.