Markets finish week down after bouncing on Bannon's exit >>> READ MORE

7 Big-Name Stocks Set to Crash

Don't get too comfortable with these well-known companies

      View All  


Cisco NASDAQ:CSCOCisco (CSCO) stock is up about 14% year-to-date, so some folks might not think this blue chip tech giant is a dud. However, CSCO is off 15% since mid-August on soft numbers and ugly sentiment.

Specifically, Cisco sold off after its Q4 earnings in August, which offered weak guidance. Yes, the stock met the market on profits … but a continued sluggishness in Cisco sales and broader corporate IT spending don’t bode well for the outlook of this stock.

The company responded by laying off 4,000 more workers; however, that didn’t prevent a spate of downgrades including an “underperform” rating from Credit Suisse and a downgrade from analyst firm MKM.

Continued softness in competitors like Oracle (ORCL) and IBM (IBM) hints that the enterprise IT business is suffering, and CSCO’s outlook confirms that. So investors better be prepared for a bumpy ride over the next several months — particularly if the market experiences a broad selloff.

Article printed from InvestorPlace Media,

©2017 InvestorPlace Media, LLC