This is a financially rock solid company and the stock trades at a fairly low multiple and pays a solid dividend so investors could do worse than pick up a few shares now.
From a technical analysis standpoint, a stock can be in a downtrend, an uptrend or in a sideways consolidation. CSCO is making a subtle turn here from bearish to neutral or perhaps mildly bullish simply by having not broken down. This looks like a good time to sell some puts to either get into the stock a little cheaper or to collect the premiums.
csco has very positive cash flow, little debt, beat earnings predictions last quarter but sales slumped a little so management cut back on expenses warning investors of a short term correction in growth and the unpredictability of foreign markets. the market responded to that by discounting CSCOs shares 12% or a 3 dollar drop in price. personally i think that was way too much. CSCO has a 3.2% dividend which is better than any bank and a lot of bonds. basically i see two scenarios for CSCO 1. it has merely hit a bump in the road and will have to adjust into other markets and streamline its product line in order for earnings to start growing again or: 2. protectionist tactics from foreign govts will prevent them from realizing their best growth opportunities. in either case CSCO is a fundamentally sound company and i believe the stock buyback program and the dividend alone make it undervalued at its present market price.