|Bid||54.38 x 900|
|Ask||54.43 x 4000|
|Day's Range||54.06 - 54.67|
|52 Week Range||40.25 - 57.53|
|Beta (3Y Monthly)||1.05|
|PE Ratio (TTM)||18.87|
|Earnings Date||Aug 14, 2019|
|Forward Dividend & Yield||1.40 (2.50%)|
|1y Target Est||56.46|
Chuck Robbins minces no words in describing how he took the baton from Silicon Valley legend John Chambers and began to radically remake Cisco Systems Inc.: “The last quarter before I took over was a record for revenue, but I said we were going to change everything,” Robbins told MarketWatch.
The world's top 10 technology names include seven American names, but you'll find a couple of Chinese companies and a Korean conglomerate on the list, too.
Last week, the U.S. Commerce Department added Huawei Technologies to its Entity List, saying, “The U.S. government has determined that there is reasonable cause to believe that Huawei has been involved in activities contrary to the national security or foreign policy interests of the United States.” This in effect bars the Chinese telecom equipment maker from doing business with U.S. companies, although the trade restriction was given a 90-day reprieve a few days later.
The revival of older tech companies continues. In recent years, we've seen Intel (NASDAQ:INTC), Microsoft (NASDAQ:MSFT) and other such powers of the 90s tech boom turn back into hot stocks again after years of doing nothing. Cisco (NASDAQ:CSCO) is becoming the latest to buck all expectations and turn once more into a star performer. CSCO stock is 6.2% below its 52-week high.Source: Shutterstock Cisco stock peaked around $80 a share in 2000, a lofty level that most analysts assumed the shares would never reach again. CSCO crashed to the teens following the dot-com implosion and would not reach $40 again until 2017. As recently as the end of 2016, it was still trading at just $30. Now, however, shares have doubled in just a couple of years and are making a run to top their long-standing all-time high. What's led Cisco's revival, and will the good times continue? Rare Tech Trade War WinnerWhile the trade war hasn't been a disaster for the U.S. stock market as a whole, it's had an almost universally negative impact on tech stocks in particular. That said, CSCO stock has been unusual in that it is gaining from the tensions with China. Why's that? The answer is 5G.InvestorPlace - Stock Market News, Stock Advice & Trading TipsUntil recently, it appeared that Huawei had a dominant lead in the race to build 5G gear. It got so bad at one point that Cisco CEO Chuck Robbins had to assure the market that there wouldn't be just one supplier of 5G equipment. With Huawei's central role in the Chinese tech spying scandal, however, the tables have turned. Huawei's CFO is in legal trouble, while the Trump administration is putting the screws on the company. The White House has urged European nations, for example, to stop buying products from Huawei as well. * 7 Stocks to Buy for Over 20% Upside Potential Cisco is the clear winner from this. Until recently, most analysts assumed Huawei would be the dominant player in this space. But Cisco never gave up, and now the political winds have given the company a golden opportunity. As Robbins put it in an interview with Barron's earlier this year: "We're singularly focused on 5G, and have every confidence we will win". He added that, "I would put our innovation against theirs or anyone else in the world […] I feel not only can we be competitive, but we are beating them."The battle for 5G is still in the early stages. Some estimates suggest that less than 5% of mobile traffic will be on 5G by the end of 2019. That leaves plenty of room for Huawei to regain its edge if political pressure eases. But for now, Cisco has to like its odds. For what it's worth, Nokia (NYSE:NOK) is another potential winner in 5G if Huawei can't regain its leadership role. Earnings Strength in DetailsCisco's recent earnings report was a good one, and was stronger than it may look at first glance. Revenue just barely topped expectations, while GAAP earnings beat consensus by three cents a share. That's all fine, if not extraordinary.Where things get good is when you look at the details. The company's gross margin ticked up nicely. This was aided by a rather remarkable 12% increase in operating income, while operating costs grew by only 1%. This is showing the power of Cisco's growing subscription and services businesses. Additionally, the company put in solid guidance for next quarter, casting aside worries that the company was seeing a slow down due to trade war issues. CSCO Stock Shed Dead-Money ValuationIn recent months, Cisco's P/E ratio has marched steadily higher. Not too long ago, CSCO stock was trading for as low as 10x earnings. Like Intel and Microsoft, Cisco stock was treated as "dead money", good for little more than the dividend. Throughout 2018, Cisco's forward P/E ratio advanced to around the 14x mark. Now, CSCO stock has hit 17x forward earnings with the latest burst of enthusiasm. * 7 Safe Stocks to Buy for Anxious Investors That shows just how bad sentiment had been until recently. That 17x forward earnings is hardly terrible for a leading tech company that is pushing something like 6% revenue growth this year. Additionally, it's worth noting that Cisco is increasingly deriving its revenues from subscriptions and services. Like so many tech firms have done in the past, Cisco stock's P/E ratio will rise as the market credits its more stable and long-lasting subscription-based revenue streams.You shouldn't forget about the dividend here either. Even with the strong rise in CSCO stock, it is still yielding 2.5%. On top of that, it is a leading dividend growth play. Over the past five years, Cisco has grown its dividend by a compounded 20% per year. Cisco Stock VerdictObviously Cisco stock has gone up a lot over the past year. It'd be better to buy a dip, should one present itself in coming weeks.Even at $54 per share, however, CSCO stock should make its owners more dough in 2019. As the market prices in further upside from 5G, Cisco stock could trade toward $70 by the end of the year.At the time of this writing, Ian Bezek owned INTC and CSCO stock. You can reach him on Twitter at @irbezek. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 6 Stocks to Buy for This Decade's Massive Megatrend * The 7 Best Stocks to Buy From the IPO ETF * 7 Athletic Apparel Stocks With Marathon Pace Compare Brokers The post Cisco Stock Investors Will Keep Winning As The Trade War Heats Up appeared first on InvestorPlace.
Palo Alto's (PANW) third-quarter fiscal 2019 results are likely to be driven by its strong product portfolio, which is aiding customer acquisitions.
SAN JOSE, Calif., May 22, 2019 /PRNewswire/ -- Cisco today announced the appointment of Wesley G. Bush, chairman of Northrop Grumman Corporation, to its board of directors, effective May 21. "Wes is a well-respected leader with deep technology expertise," said Chuck Robbins, chairman and CEO, Cisco. Prior to 2010, he served in various leadership roles, including as Northrop Grumman's president and chief operating officer, corporate vice president and chief financial officer, and president of its Space Technology sector.
The IPO market in 2019's been a bit of a Jekyll and Hyde affair with some well-known unicorns such as Lyft (NASDAQ:LYFT) and Uber (NYSE:UBER) disappointing investors while others like PagerDuty (NYSE:PD) and Beyond Meat (NASDAQ:BYND) have exceeded investor expectations. It's never been easy separating the good IPOs from the bad ones. You never know how a stock is going to perform once it's trading in the secondary markets. However, there are two ETFs available to help investors take advantage of the IPO phenomenon on a long-term basis. InvestorPlace - Stock Market News, Stock Advice & Trading TipsOf the two, the First Trust U.S. Equity Opportunities ETF (NYSEARCA:FPX) is the larger ETF with total net assets of $1.1 billion. However, it is the tiny Renaissance IPO ETF (NYSEARCA:IPO) at $42 million in total assets that has a more appropriate methodology for finding the best stocks to buy. That's because IPO primarily adds new stocks on a quarterly basis -- though it can make fast-track additions if the offering is large enough as was the case with Lyft, while FPX adds IPO stocks after the sixth day of trading, which means in the case of Beyond Meat, that the fund is buying shares at hugely inflated prices.The other difference is that FPX holds for four years while IPO kicks IPO stocks out after two years. In my experience, the best time to buy IPO stocks is between 12-24 months after going public. * 7 Safe Stocks to Buy for Anxious Investors So, based on the holdings of IPO, I've selected the seven best stocks to buy for the long haul. VICI Properties (VICI)Source: Shutterstock VICI Properties (NYSE:VICI) is a real estate investment trust that was spun off from Caesars Entertainment (NYSE:CZR) in October 2017. VICI went public on January 31, 2018, at $20 a share. Its first-day return was 4.5%. Since its IPO, VICI shares are up 11.5% through May 15. What's to like about the experiential and gaming real estate portfolio?First, it has a 100% occupancy rate with its tenants (Caesars, Harrah's, etc.) on triple-net leases. That means the tenants pay for all the upkeep on the properties. Secondly, it has a diversified group of revenue streams. Although gaming accounts for 51% of its overall revenue, it gets another 19% from hotel rooms, 18% from food and beverage, and 12% from management fees, etc. I know what you're thinking. VICI is the asset-heavy castoff from Caesars. Caesars keeps the operating contracts and VICI is stuck with assets that are near-impossible to convert from a casino operation should the business go sourThe fact is, VICI's properties generate some of the highest adjusted funds from operations (AFFO) yields in real estate at 6.3%Furthermore, it's got excellent non-gaming external growth opportunities ahead of it to tap into an ongoing desire by consumers to spend on experiences rather than things. Sixteen months into its IPO, it's underperformed. That lack of performance won't last forever. In the meantime, enjoy the 5.1% yield. Roku (ROKU)Source: Roku If you're a cord cutter, you probably are familiar with Roku (NASDAQ:ROKU), the company behind the Roku Channel and its streaming platform that brings together consumers, content publishers, and advertisers for mutual benefit. Roku went public in September 2017 at $14 a share. Its first-day return was 67.9%; its total return since its IPO is 495.3%. I'm not usually a fan of stocks that aren't profitable, but Roku's got a pathway to profitability that's sure to make IPO investors even more money than they've already made. Roku makes money in three ways: advertising, licensing fees from Smart TV makers who license the Roku operating system, and from the sale of streaming players. This trifecta of growth is what's got me so darn excited about its future. I recently stated that an analysts prediction Roku's stock price could triple over the next five years wasn't as crazy as it sounded. That's because Roku continues to grow its user base and hours streamed by 40% or more a quarter. * 5 Great Tech ETFs That Aren't the XLK In my opinion, Roku's got an excellent shot at hitting $200 within the next 2-3 years. It's got that good a business model. Ceridian HCM (CDAY)Source: Shutterstock Although I said in the intro that it's virtually impossible to know how a stock's going to perform in the secondary markets, I had a real strong feeling about Ceridian HCM (NYSE:CDAY) when it went public in April 2018 at $22 a share. Up 41.9% in its first day of trading and 128.0% since its IPO, I recommended CDAY within a week of the human capital management software company selling shares to the public. "Dayforce has over 3,000 customers who pay a per-employee, per month (PEPM) subscription with an initial term of 3-5 years. If the customer grows headcount, Dayforce wins," I wrote May 7, 2018. "Dayforce has grown its cloud revenue by more than 60% on a compounded basis over the past five years. I see it as one of the best up-and-coming stocks to own on the NYSE."Fast forward to the end of Ceridian's Q1 2019 results that it released May 1, and Dayforce now has 3,851 customers, a 28% increase in less than a year. As it continues to build market share in North America and beyond, I expect its profitability will increase dramatically. CEO David Ossip is Canadian (as am I) so I'm biased about his leadership capabilities. However, if you read up on the Toronto resident, you'll find out he's the real deal. Focus Financial Partners (FOCS)Source: Shutterstock If you've owned shares of wealth-management consolidator Focus Financial Partners (NASDAQ:FOCS) since it went public last July at $33, I feel your pain. That's because FOCS made 13.8% on its first day of trading but has given it all back and then some -- down 3.0% in the 11 months since its IPO. The biggest problem with consolidating independent wealth management firms is that you can pay the right price when making an acquisition but lose ground anyway due to market corrections, slowing economies, etc., which lowers the assets under management and by extension the fees you charge as a result. Therefore, you can acquire the smartest money managers in the world, and still lose."Organic revenue growth(1) was 7.7%, which when compared to the prior year quarter, was impacted by the effect of the markets, primarily equities and fixed income, decline in the 2018 fourth quarter and the advanced billing structure utilized by certain of our partner firms," Focus stated in its Q1 2019 press release. "Based on our M&A momentum and the general recovery in the financial markets, our organic revenue growth for the second quarter of 2019 is expected to be above 10%, demonstrating the resiliency of our business model."I believe the consolidation of independent registered investment advisor (RIA) firms is only in the early stages. That being said, if you do buy shares in FOCS, be less concerned about M&A and more concerned about organic growth. Watch that number like a hawk. * 7 Stocks to Buy for Over 20% Upside Potential That's because in 3-5 years, the music will stop, and you don't want to be left without a chair. Dropbox (DBX)Source: Shutterstock So many IPOs go public each year it's hard to remember when some of the better-known issues listed their shares. Take Dropbox (NASDAQ:DBX), the web-based cloud storage and collaboration platform. I could have sworn it was the granddaddy amongst the seven stocks I've recommended. No, that title goes to Roku, which went public in the fall of 2017. Dropbox's IPO was March 22, 2018, at $21 a share. On its first day of trading, DBX shares gained 35.6%. However, since then, investors haven't been nearly as enthusiastic about its stock. It's up only 8.6% in the almost 14 months it's been trading on NASDAQ.It's not unusual for IPO shares to lose ground after a robust first-day return. According to UBS head of asset allocation Jason Draho, the average first-day return is 18%, followed by six months of underperformance relative to the broader markets. Furthermore, as I often point out when discussing IPOs, you can often buy shares of an IPO for less than its original price within 12-24 months of going public. Dropbox announced its Q1 2019 results May 9 and they were solid across the board. However, DBX dropped perilously close to falling below $21, the price at which it went public. This is one stock where I'd buy a little now and wait to see if it falls below $21 in the next 3-6 months. Zoom Video (ZM)One of the Best Stocks Class of 2019, Zoom Video Communications (NASDAQ:ZM) went public on April 17 at $36 a share. It was an immediate hit with investors gaining 72.2% in its first day of trading and is up 121.6% through May 15, an annualized total return of almost 1,500%. Yikes.I had never heard of the company until I read a Yahoo Finance story by Brian Sozzi about CEO Eric Yuan. In it, he talks about how Zoom would always leave money on the table when obtaining funding from VC investors so that long-term everyone would win. In case you're not familiar with Zoom, it provides outstanding video conferencing technology to companies on a monthly subscription basis. The subscription economy continues to gain traction, so the IPO timing was good on Yuan's part. However, it is the fact that Yuan left Cisco (NASDAQ:CSCO) in 2011 to create better video conferencing technology than the giant networking company offered, that makes this IPO a must own. And, let's not forget it's one of the few Class of 2019 IPOs that makes money. Spotify (SPOT)Source: Spotify I don't know if it's a coincidence, but Spotify (NYSE:SPOT) went public on April 3, 2018, at $132 a share. Its first-day return was a respectable 12.9%. However, its total return through May 15 is 3.4%, 520 basis points worse than Dropbox, whose IPO was two weeks earlier. Unless you've been living on Mars, you're likely familiar with the global music streaming service. At the end of April, it announced its Q1 2019 results that included a 26% year over year increase in active monthly users to 217 million and a 32% increase in premium subscribers to 100 million. Of greater importance is the fact it generated $173 million in free cash flow, 134% higher than in the same quarter a year earlier. While it's best known for streaming music, it is the work it's doing for podcasters that's got my attention. Between launching Spotify for Podcasters last October and Soundtrap for Storytellers on May 14, the company's capturing a potentially lucrative secondary market from its original business idea. * 10 Names That Are Screaming Stocks to Buy Like Dropbox, I see it plodding away at its business until economies of scale force investors to take notice. Until then you're paying about the same valuation for its stock as you would have a year ago, but you're getting a much stronger company from a financial perspective. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Safe Stocks to Buy for Anxious Investors * 4 Tech Stocks Looking Vulnerable * Should You Buy, Sell, Or Hold These 7 Hot IPO Stocks? Compare Brokers The post The 7 Best Stocks to Buy From the IPO ETF appeared first on InvestorPlace.
John Chambers turned Cisco Systems from an obscure networking gear maker into the most valuable company in the world by flourishing under pressure.
With HPE set to report its quarterly financial results on Thursday, let's see if investors should consider buying HP Enterprise stock.
Tech Earnings Season: Cisco, Alibaba, and WalmartCisco’s third-quarter resultsOn May 15, Cisco (CSCO) announced its third-quarter earnings results for the quarter ending in April. The stock rose nearly 10% in the past week after the company’s
The Commerce Department's announcement last week that it would require all U.S. companies doing business with Huawei and its affiliates to get a special license was a dramatic move designed to get China to surrender in the trade war. Huawei is a font of Chinese national pride. Very often investors assume 5G wireless is about smartphones and download speeds between 10x and 1000x faster than 4G.
Cisco Stock Soars on Strong Q4 Outlook(Continued from Prior Part)Analysts’ recommendations for CiscoOf the 30 analysts covering Cisco Systems (CSCO), 21 have given the stock “buy” ratings, while nine have given it “holds.” No analysts have
Cisco Stock Soars on Strong Q4 Outlook(Continued from Prior Part)US-China trade warLast week, the United States raised tariffs on imported Chinese goods worth $200 billion to 25% from the 10% it had levied earlier. In response, China increased
Cisco Stock Soars on Strong Q4 Outlook(Continued from Prior Part)Strong cash flowsCisco Systems (CSCO) ended the third quarter of fiscal 2019 with an operating cash flow of $4.3 billion, ~79% higher than the previous year’s quarter, including the
Both the S&P 500 and the Nasdaq Composite, the two broadest measures that we have for general market health, had surrendered their 50-day SMAs (simple moving averages) on Friday, after regaining that level on Thursday. The short answer would be "yes." Going into the weekend, the market focus had been placed squarely upon the trade war between the U.S. and China, I (and others) have warned for quite some time, that this "trade war" was really not very far at all from becoming a "cold war." Quite apparent to the casual observer is the weakness felt across eight of the S&P 500's 11 sector groups over the past five trading sessions.
Cisco Stock Soars on Strong Q4 Outlook(Continued from Prior Part)Impressive outlookDuring its fiscal 2019 third-quarter earnings call, Cisco Systems (CSCO) forecast strong sales and profit guidances for the fourth quarter (which will end in July
How Cisco Fared in the Third Quarter(Continued from Prior Part)Stock returnsCisco (CSCO) stock has generated impressive returns over the last three years. Cisco stock rose 10.3% in 2016, ~30% in 2017, and 8.8% in 2018. The stock has gained ~23% this
Shares of Cisco Systems Inc. were gaining Thursday after the company beat earnings expectations and delivered an encouraging revenue forecast, suggesting to at least one analyst that the company was “defying the macro.”
Also, management expressed confidence with strong guidance for the next quarter. Revenue growth was consistent across all products, but the "Security" category stood out. The 21% year-over-year revenue growth in the security area is impressive.
Craig Moffett, founder and senior analyst at MoffettNathanson, joins "Squawk Box" to break down where we are in the battle for 5G continues and why it matters.