The stock has done well with nearly 27% growth on a 52 week basis. It is up nearly 40% from the 52 week low of ~$15 made in July. Despite this, the P/E is reasonable at around 12 and the forward P/E is 10 indicating moderate expectations on the growth front by the market. Even the price to sales and price to book is around 2.35 and 2 respectively which is reasonable if the profit margin of 20% is factored. In the last quarter the revenue growth was 5% and the the net income increased marginally (excluding 926 million tax settlement). With $46 billion cash and $16 billion debt, the company looks reasonably placed on the liquidity front. The future growth is dependent on the turnaround in economies of the world as sales are dependent on the increase in spending by the government and the private sector. Though there have been some signs of recovery, the confidence is not strong enough to indicate a reversal of the gloom. It recently got a favorable ruling in the patent infringement lawsuit against VirnetX Holdings and that is also a small positive. These lawsuits have been on the rise and patent monetizing has become a business model now. Companies have even changed their businesses to take advantage of the growth in the IP business. Spherix IP (SPEX), known for drug research in diabetes and atherosclerosis, recently became a full service IP company and purchased several telecom patents. For Cisco, the growth in revenues & net margins is better than IBM & Intel when compared with 2011. Overall, it still looks good for the long term, provided the economy performs. Of course, this is true for almost all the stocks. The earnings and the guidance on May 15 will be the key trigger for the stock performance in the near term.
CSCO needs to start growing again. It's nice getting the dividend again but would like to see the stock head to its early 2000 highs again. If they can start making over $.50 a quarter then I can us heading to $30 a share over the next year. Nice to actually see a 1 in a 1000 post about Cisco and not the political dribble that has infested this board.