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NASDAQ:CSCO

Cisco (CSCO)

119.25
-0.29 (0.24%)
as of Jun 18, 2026, 11:48:31 pm Market Open.
354 watching
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TOP PICK
This is a critical stock for the global technology story. Using a mean of $20, they have spent the last 10 years trying to get over $20, failing, trying to get over $20, failing. It has done this 3 times. If it gets above $20, because this is the 4th time, it should go much higher and take the entire sector with it.
BUY
The dominant player in this space. Have been fighting some of the margin battles over the last while because competitors have come in and sold products at lower margins. If you are going to invest in techs, large-cap techs look the best. You had almost 12 years of multiple compression and earnings have continued to grow. Stock has been behaving well since early fall and be their most recent estimate by 10%. The only concern is that seasonally, as you get into January, techs stocks underperform a little but this is a good one to own.
TOP PICK
(A TOP PICK Feb 17/11. Up 1.17%.) His model price is $24.18, which is a 30% positive differential. Low beta stock, which you are looking for in technology. You get the growth and a little bit of a dividend.
COMMENT
January $19 strike call. Safe bet? That's an aggressive trade. These options are in the middle in terms of costs. Thinks there is some resistance at around $19 so he would rather write a Put or do a covered call, in other words own the stock and Sell a Call against it.
DON'T BUY
The high-level view of this company is that it is large which creates its own problems. Fairly mature in its field, which can be a disadvantage because of competition. Management talked about a 17%-18% revenue growth which they continue to fail to meet. Also having trouble internally with governments deferring expenses. Would probably look elsewhere in tech.
TOP PICK
(A Top Pick Jan 5/11. Down 33.6%.) $24.08 is his model price, a 30% upside.
DON'T BUY
Has become a show-me stock, but has yet to do it for him.
PAST TOP PICK
(A Top Pick Nov 4/10. Down 24.61%.) A lot of value in this company. Thinks earnings are going to be $1.85, $5 a share net in cash.
DON'T BUY
Had a good quarter so would wait a while before getting into this. They're now getting back to focusing on their core business and cutting back on expenses. Competition continues to be very strong.
SELL
Set top business is quite weak and they are quite large so are running into headwinds.
BUY ON WEAKNESS
This one has been a bit of a roller coaster. Have made an awful lot of acquisitions over the years so there is a lot of goodwill on the balance sheet. Have some threats on their core business, but he thinks they will get through this. Doesn't see high-growth. Consider buying in the $15-$16 range and hopefully it can get back to the low $20's.
HOLD
Not a growth stock anymore. Been facing margin pressure from competition across all of its switches and even in the router and enterprise space, mainly Chinese. Has the ability to rejuvenate itself. Could Buy back shares.
PAST TOP PICK
(A Top Pick Sept 23/10. Down 22.57%.) Sold his holdings from a risk management point of view. Great balance sheet. Great company but didn't seem to be able to execute well.
PAST TOP PICK
(Top pick Aug 10/10, Down 37.01%) He sold in January. It became obvious that management could not grow the company as they predicted.
COMMENT
Multiple has contracted to about 9X forward earnings and have reset their earnings and revenue growth targets to more realistic levels. Experiencing more competition in their router space. Their big end markets are governments and telecom carriers, which are both showing weakness. Expects the stock has bottomed and longer-term demand for products could improve. Have a lot of cash.
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