By Marek Fuchs
Cisco (CSCO) reports its second-quarter earnings after market close on Wednesday, and traders and analysts can hardly contain their excitement. The stock recently skipped through its 52-week high, hitting $21.27 in intraday trade on Tuesday, as analysts from Citigroup (C), Raymond James (RJF), Piper Jaffray (PJC) and more tumbled over each other to reaffirm their happy thoughts and raise expectations.
But is all the go-go energy warranted?
Perhaps. Cisco is obviously a great company with flush margins and mounds of cash. As is always the case with quality companies, we must avoid the temptation to simply hate them because they are beautiful. By the same token, however, the media and traders might be ignoring – or, at least, downplaying – two significant elements.
For one, Cisco is commonly dubbed “the bellwether for the technology sector” by The Wall Street Journal and other media outlets. Of course Cisco provides the routers and switches that provide architecturalRead More »from Cisco Earnings: 2 Key Things Investors Should Know