Time To Buy Cisco
Cisco (CSCO) is an appealing asset in the tech industry that is undervalued, but has substantial potential for capital appreciation and an increasing dividend. Despite macroeconomic headwinds worldwide, Cisco was able to increase earnings faster than revenue while lowering expenses and undertaking key partnerships. Cisco recently announced several products and services that will improve healthcare, enterprise operations and public sector organizations as well. Current shareholders should hold long term, while interested investors should buy as the market will begin to reflect and coincide with the organic growth and improving future outlook that Cisco is experiencing.
Cisco’s competition in the enterprise sector for cloud SaaS and applications is Oracle (ORCL), IBM (IBM), and Microsoft (MSFT). EMC (EMC) is worth comparing as it recently joined with Cisco and VMWorld (VMW) to compete with industry leaders like IBM and Microsoft. IBM’s $206 per share is the most expensive; the other firms are currently below $35 per share. Microsoft’s $261 billion market cap is the highest; IBM’s $236 billion is next, Cisco’s market cap is around $100 billion, and Oracle is $161 billion. Cisco’s price is around 12.7 times earnings; IBM and Microsoft are over 15 times earnings, while Oracle is 16.8 times earnings and EMC is 22.8 times earnings. Cisco’s 1.97 price-to-book and 2.19 price-to-sales ratios are also the lowest.
IBM’s $13.75 EPS is by far the highest of these firms; Cisco’s EPS is $1.49, Microsoft’s is around $2.00, Oracle’s is $1.96 and EMC’s is $1.21. To continue reading, click here.