|Bid||50.03 x 800|
|Ask||50.04 x 1100|
|Day's Range||49.79 - 50.18|
|52 Week Range||40.25 - 58.26|
|Beta (3Y Monthly)||1.10|
|PE Ratio (TTM)||19.16|
|Earnings Date||Nov 13, 2019|
|Forward Dividend & Yield||1.40 (2.80%)|
|1y Target Est||55.58|
- Q2 2019 share repurchases were $164.5 billion - 20.1% lower than Q1 2019, 13.7% lower than Q2 2018, and 26.2% lower than the record Q4 2018. - Apple continues to lead, spending $18.2 billion - down from ...
Investing.com - U.S. futures pointed to a weak opening bell on Monday as oil prices spiked to their highest level since May after drone strikes hit more than half of Saudi Arabia’s oil capacity over the weekend.
EVP, LglSrvs & GenCnsl of Cisco Systems Inc (30-Year Financial, Insider Trades) Mark D Chandler (insider trades) sold 10,733 shares of CSCO on 09/13/2019 at an average price of $50.05 a share. Continue reading...
For a good portion of this year, Cisco Systems (NASDAQ:CSCO) was one of the best-performing names in the Dow Jones Industrial Average and impressive player among large- and meg-cap, mature technology companies.Source: Ken Wolter / Shutterstock.com Escalation of the U.S.-China trade spat vanquished the Cisco stock ebullience last month and the shares have only recent shown signs of snapping out of their doldrums. Though Cisco stock is up 3.12% for the week ending Sept. 12, the shares reside more than 14% below the 52-week high. Disappointing fiscal first-quarter guidance is one of the primary reasons why Cisco stock went from hero to dud in a matter of days."Cisco sees revenue for the quarter flat to up 2% compared with a year earlier, which implies a range of $3.1 billion to $3.36 billion, below the Street consensus at $3.4 billion," according to Barron's. "Cisco sees non-GAAP profit of 80 cents to 82 cents a share for the quarter, below consensus at 83 cents."InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Discount Retail Stocks to Buy for a Recession Mr. Market was probably right to punish Cisco stock on the back of that poor profit preview. Think about the carnage in Cisco stock this way: investors embrace mature, older technology companies, like Cisco, for lack of earnings variability and volatility. If an investor wants growth and the risks that come with it, there are plenty of other places to be in tech.So when a company like Cisco disappoints on earnings or guidance, the repudiation is likely to be severe, as it recently has been for Cisco stock. Pep TalkThere's some good news as it pertains to Cisco stock, starting with the fact that it has some supporters on Wall Street and there may some underappreciated elements to the story here.Recently, Piper Jaffray analyst James Fish did a sum-of-the-parts analysis on Cisco and arrived the company being worth $244 billion, or $57 a share. That compares with a close just under $50 with a market value of $211 billion on Thursday, Sept 12. The analyst isn't saying Cisco can break up, but rather is pointing out growth opportunities in the name.As I've noted a couple of times here, Cisco is "old school" by the technology sector's standards, but that isn't a detraction. The company is heavily involved with some high-growth technology segments, including cloud computing, cybersecurity and Internet of Things (IoT)."As networking teams are adopting cloud solutions, Cisco is proliferating software, analytics, wireless, and security offerings to satisfy nascent trends," said Morningstar in a recent research piece. "With its extensive product portfolio, we see Cisco as the only one-stop-shop networking vendor. We believe Cisco's vast existing installation base and budding product offerings, like network monitoring and analytics, keep Cisco as an industry leader."With Cisco stock, investors get some leverage to fast-growing market segments, but the growth comes at a fairly reasonable price (about 15x forward earnings) and with a 2.80% dividend yield. There's Not Much Growth Ahead for CSCO, But Steadiness Should ReturnCisco will likely grow revenue at 3% to 4% over the next three or four fiscal years. That's nowhere growth stock territory, but if the company can offer modest surprises here and there with low earnings variability, conservative investors seeking technology exposure could be compelled to revisit Cisco stock.Increased device connectivity via the booming IoT market is another potential driver for Cisco stock, though one that's likely to be longer ranging in nature."The company's wireless segment is well positioned to capitalize on the growing number of devices touching networks," said Morningstar.Additionally, Cisco is an epic capital return story. The company has pledged to return 50% of cash flow to investors via dividends and buybacks. A decade ago, its annual dividend was 12 cents a share. Today, it's $1.40. * 10 Recession-Resistant Services Stocks to Buy If the company could push gross margins into the 65% area and operating margins into the 30% realm, those could be significant catalysts for Cisco stock over the medium term.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Big IPO Stocks From 2019 to Watch * 7 Discount Retail Stocks to Buy for a Recession * 7 Stocks to Buy Benefiting From Millennial Money The post Cisco Stock Isn't a Growth Stock Anymore -- And That's OK appeared first on InvestorPlace.
There has been strong demand for better and faster communications for literally thousands of years -- from smoke signals to homing pigeons to the Pony Express, telegraphs, and telephones. Call it the thousand-year bull market … one that I can see continuing for another 1,000 years.Fortunately, we don't need to think that far ahead to make money now. In fact, we can start right now. The next great leap in technology and communications is happening as we speak, and this move to 5G is going to be the biggest one yet.Think about how important technology has become to our economy, our lives, and our world over the last century. Take technology away and almost everything collapses.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIf that's not the definition of infrastructure, I don't know what is. It used to be roads, and now it's the information super highway. Technology is everywhere … from our computers to our clothes dryers to our cars.Investors who recognized this trend in the 1980s and 1990s and owned the best internet infrastructure stocks made a ton of money:Intel (NASDAQ:INTC) was the leader in semiconductors. Those chips were a big part of the foundation, and the stock soared more than 3,500% in the 1990s.Applied Materials (NASDAQ:AMAT) made the equipment that made all of those chips. Its return in the 1990s: more than 6,150%.Then there was Cisco Systems (NASDAQ:CSCO), the king of communications and networking equipment. This stock went from under $1 per share in the early 1990s to $43 by the end of the decade for life-changing returns of nearly 34,000%! (The stock took off so sharply in the late 1990s that you can see how the higher prices on the y-axis are mushed together.)We are now on the verge of the most advanced breakthrough of all -- a new infrastructure that will not only make communications faster but enable virtually all of the coming technological innovations across the world.Just as there were fortunes made in prior generations, there will be big money made once again. In fact, I think this opportunity is even bigger because the leap ahead will drive other tech trends -- some of the most powerful the world has ever seen.Think of it as the next-generation toll road. The road to the future passes through 5G wireless technology, and it's time to set up our booth and start collecting. "A Game Changer for Humanity""Get ready," 5G "is going to change EVERYTHING," says Forbes.ZDNet says it's so critical that it's going to "replace the future."Financial Times calls it simply "a game changer for humanity."5G is poised to fundamentally alter the very fabric of society. This tech is little-known (as of now), but it is going to be the centerpiece of an entire new generation of groundbreaking technologies. That's pretty heady stuff, and I completely agree.It is the key driver of what insiders are already calling the "Next Industrial Revolution."In fact, that's exactly why USA Today claims "it has the potential to usher in the fourth industrial revolution -- it's that massive."MIT calls it "the next technological revolution."Tech insiders are already claiming the impact of 5G will be like the printing press, the internet, and the steam engine.That's why billionaire investors like Bill Gates and Ray Dalio are beginning to invest millions of dollars into this emerging tech. Companies like Facebook (NASDAQ:FB), Alphabet (NASDAQ:GOOGL), and Amazon (NASDAQ:AMZN) are secretly making massive investments in it as well.Here's my prediction: If you invest in 5G today, it could be like getting in on the early days of Amazon, when investors could have made a massive 102,000% gain. Or Alphabet, which has allowed investors who bought when it first went public as Google to make more than 20 TIMES their money.I want to help you do that. How to Get StartedTech insiders estimate more than one trillion devices will be connected over the next 10 to 15 years. Automotive … financial services … agriculture … retail … defense … healthcare … manufacturing … media and entertainment … transportation … public safety … construction. It's all about to be revolutionized.The rollout of 5G is going to be MUCH bigger than 4G.4G was an improvement. 5G is a game changer.When exactly does all of this excitement happen? This time around, we have so many more applications in mind -- just waiting for this breakthrough. $53 TRILLION in new revenue will be added to the economy over the coming years, and those who become early backers of these technologies could make a fortune.It's already started.I believe 5G is so important to our world and to investors that I want to talk much more with you about it in the coming days. I want to make sure you understand what it is, why it's so revolutionary, and most importantly how to make money.I am incredibly excited about this the once-in-a-lifetime opportunity, and I know you will be, too, as you learn more about it. Stay tuned.Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Companies Using AI to Grow * The 10 Biggest Winners From Second-Quarter Earnings * 7 Marijuana Penny Stocks to Consider for Those Who Can Handle Risk The post 5G Stocks: How to Invest in the Technology That "Is Going to Change Everything" appeared first on InvestorPlace.
Markets are rising so far in September, after a rough August. The S&P 500 is up 2.7% this month, bringing the index’s year-to-date gains to almost 20%. And looking forward, two stocks are poised for particular outperformance. These are stocks that are buzzing following two notable analyst ratings. Analysts usually reiterate ratings – so upgrades speak volumes about a stock's potential. We found these stocks by filtering for the latest upgrades on the Daily Analyst Ratings, an up-to-date listing of the most recent stock reviews by analysts. Let’s look more closely, and see what the analysts had to say about these two recent upgrades. Micron Technology, Inc. (MU)The world’s fifth largest semiconductor company, with $31.8 billion in revenues last year, Micron (MU – Get Report) has proven more resilient than its peers, with less price volatility this past summer in the face of increased US-China trade tensions. MU shares have gained 12.6% so far this month, with 59% gains year-to-date.The strong stock performance drew notice from Longbow analyst Nikolay Todorov, who upgraded his stance on the stock from neutral to buy. In his comments, he wrote, “We are turning more positive on memory fundamentals as we now believe excess inventory will be depleted faster than expected, triggering an improvement in pricing and margin ahead of current expectations.”Going into greater detail, Todorov added, “Our checks highlight upside in shipments and improving DRAM and NAND pricing fundamentals associated with upside at select hyperscales and risk of tightening supply. As a result, upstream inventory drawdown is occurring faster than previously forecast, which should drive a bottoming in DRAM fundamentals by year-end to pair with an in-process recovery in NAND fundamentals.” Todorov’s price target of $66 suggests an impressive 30% upside for MU.Todorov is not the only bull on Micron. Weston Twigg, from KeyBanc, set raised his price target from $45 to $58, saying, “Barring a recession, we expect memory trends to improve through 2020.” Twigg’s new target implies a potential upside of 15%.The upbeat analyst reviews of MU shares, along with the general optimism about the company’s near- to mid-term prospects, pushed the stock price up in recent days, well above its average price target. As well as the upward trending share price, MU has a Moderate Buy rating from the analyst consensus, based on 14 buys, 5 holds, and 2 sells set in the last 90 days. Cisco Systems, Inc. (CSCO)We may live in the digital age, but our information networks live on hardware. And Cisco (CSCO – Get Report) is the leading provider of the networking hardware that makes up the physical connections of the internet.Cisco has done well as the hardware man for the tech world. Shares are up 14.5% year-to-date. While that is below the S&P average of 19%, the most recently quarterly report showed an EPS beat of 1.32%. Steady growth and earnings have made Cisco a favorite with investors, as has the company’s 2.96% dividend. The quarterly payment is a modest 35 cents per share, but Cisco has a policy making regular increases and the dividend has grown 13% in the last 5 years.The strong market position attracted attention from 5-star Evercore analyst Amit Daryanani. He initiated his coverage of this stock with a buy rating and a price target of $60, suggesting a robust upside potential of 20%. Daryanani believes that future hardware investment in the tech sector will focus on the upcoming 5G networks. He writes of Cisco: “Investors are underappreciating Cisco's shift towards a more predictable and free-cash-flow-focused model. The transition CSCO is undergoing merits investors focusing more on an FCF-based valuation vs. traditional price-to-earnings approach.“Cisco is well-positioned as an end-to-end solutions provider across the enterprise networking product spectrum; CSCO’s unique portfolio of assets allows the company to address emerging growth adjacencies (security, services, cloud-based solutions) while maintaining market leading positions in several core networking product categories.”Also bullish on Cisco is James Fish, of Piper Jaffray. Writing in mid-August, Fish said, “We believe that the stock warrants a higher valuation than the market is offering. We see good risk-reward on Cisco at current levels as long as the company's growth segments… continue to execute.” Fish’s $57 price target implies an upside of 12% for CSCO.Cisco is up 4% since Daryanani opened his coverage, and up 8% for September so far. The stock’s Moderate Buy consensus rating is based on 22 reviews, including 16 buys and 6 holds. The average price target of $56.47 suggests an upside of 11% from the current share price of $50.60.Visit our Top 25 Experts page today, and find out more about Wall Street’s best stock watchers.
Stocks that pay good dividends and also have significant stock buyback programs provide numerous benefits to investors. These benefits include: * Share reductions from buybacks allow the stock to increase its dividends per share. * Buybacks act as a natural buffer for the stock. * Earnings per share increases for the same amount of net income. * Buybacks act to sterilize share dilution from management and employee options. * Lower share counts over time increase the remaining shareholders' stake in the company. * Compared to dividends, buybacks are a much more tax-efficient return of capital.For these reasons, there is a clear trend in the United States stock market for companies to spend more on share buybacks. CNBC recently reported that according to a Goldman Sachs (NYSE:GS) study, U.S. share buybacks are expected to hit $1 trillion this year. Corporations are using over 104% of their free cash flow for buybacks, up from 82% last year. * 10 Stocks to Sell in Market-Cursed September I'm going to focus on five stocks that pay shareholders dividends and have large share buyback programs. Combined, these dividends and buybacks provide large total yields. And over time, these stocks are likely to be good investments.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Dividend Stocks to Buy: Apple (AAPL)Source: thanat sasipatanapa / Shutterstock.com Dividend Yield: 1.4%Apple (NASDAQ:AAPL) stock has an attractive 1.4% dividend yield. But it returns even more capital to shareholders through its large share buyback program. AAPL has spent over 107% of its free cash flow on buybacks in the past year. The company has cut its shares by 32% in the last six years.Based on recent analysis, Apple stock will have an estimated 6.5% buyback yield over the next year, giving it a nearly 8% total yield.For example, AAPL recently reported that it spent $17 billion in share repurchases and $3.6 billion in dividends in its most recent quarter. The buybacks alone, if continued each quarter, represent on an annualized basis just under 7% of its market value ($68 billion dividend by $975 billion).Expect good things from Apple's stock buyback program in the years to come, including higher dividends per share and higher earnings per share. Microsoft (MSFT)Source: gguy / Shutterstock.com Dividend Yield: 1.4%Microsoft (NASDAQ:MSFT) stock yields 1.4% and has a large share buyback program. It just completed a $25 billion share repurchase program. In the past quarter alone, MSFT spent $7.7 billion on shareholders, including $4.2 billion in share buybacks.These repurchases have reduced the amount of MSFT shares outstanding by over 30% in the past 15 years. Since Microsoft stock has a $1 trillion market value, its annual spending of over $16 billion in buybacks represents a 1.6% buyback yield. Combined with the 1.4% dividend yield, MSFT sports a 3% total yield. Oracle (ORCL)Source: Jer123 / Shutterstock.com Dividend Yield: 1.7%Oracle (NYSE:ORCL) stock has a 1.7% dividend yield, but has a massive buyback program. In the past year alone, ORCL spent $36 billion on buybacks, representing 20% of its $182 billion market value.In its last eight fiscal years, ORCL has reduced its share count by over 33% using its free cash flow to repurchase shares. All eyes are going to be on ORCL's August fiscal first-quarter earnings statement to see how many shares it has bought back. Since ORCL spent over 280% of its free cash flow on buybacks, effectively drawing down its cash balance, I suspect ORCL's buyback activity may have been reduced for the August quarter. * 7 Stocks to Buy In a Flat Market Nevertheless, at the rate its buybacks occurred last fiscal year (ending in May), Oracle stock sports an annualized 20% buyback yield. Its free cash flow yield is 7.5% of its market value.ORCL will post its earnings Sept. 12, including its cash flow statement which will show the share repurchase amounts. Cisco (CSCO)Source: Sundry Photography / Shutterstock.com Dividend Yield: 2.8%Cisco (NASDAQ:CSCO) stock has an attractive 2.8% dividend yield. Cisco stock also has an attractive buyback program. This is because the company is expected to make $7.7 billion in share repurchases this year.Compared to its $206 billion market value, this gives CSCO stock a 3.7% buyback yield. Its total yield is an appealing 6.5% (2.8% dividend yield plus 3.7% buyback yield).In the past ten years, CSCO has reduced its shares outstanding by 27%, and should reach close to a 30% reduction this year. The main reason for this is that CSCO produces abundant free cash flow -- over $15 billion in this year alone.Expect that shares will continue to fall at CSCO. This has the benefit of allowing CSCO to be able to raise its dividend per share for the same amount of earnings its produces. It also increases earnings per share. Lastly the share buybacks act as a continuing source of demand for the stock, will help push the stock higher over time. McDonald's (MCD)Source: 8th.creator / Shutterstock.com Dividend Yield: 2.2%McDonald's (NYSE:MCD) stock enjoys a 2.2% dividend yield, but also engages in large share buyback activity. MCD reported that it expects to complete its three-year $25 billion share buyback program by the end of this year.This represents an average of $8.3 billion in share buybacks per year. Since MCD stock has a $158 billion market value, the average buyback yield is 5.3% of its stock market value.Combined with the 2.2% dividend yield, the buyback yield gives MCD an estimated 7.5% total yield. This means that over 7% of MCD's stock value is returned to shareholders on average each year through either dividends or buybacks.On Aug. 30 Mark Hake launched the Total Yield Value Guide, which focuses on high-total-yield value stocks. Subscribers during September receive a 20% discount and a two-week free trial. As of this writing, Mark Hake, CFA does not hold a position in any of the aforementioned securities. Mark Hake runs the Total Yield Value Guide which you can review here. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post 5 Dividend Stocks with Large Share Buybacks appeared first on InvestorPlace.
Avnet (AVT) partners with Trusted Objects to ensure faster time to market, cost reduction and better security for developers seeking to secure IoT deployments in cloud, middleware and on-device.
Program Offers Unified Monitoring for UCS and All Cloud and On-Premises Infrastructure AUSTIN, Texas , Sept. 11, 2019 /PRNewswire/ -- Zenoss, a leader in intelligent application and service monitoring, ...
Eighteen years have passed and this day never gets easier. There are many great stories of remembrance, terrific threads on Twitter to help us truly remember even if we will never understand the horror behind the tragedy.
The firm wrote that investors should value Cisco based more on free cash flow than on the more traditional price-to-earnings approach.
After a bull market that's now the longest on record, you might think that nothing is cheap anymore. How one precisely defines "cheap" can vary from person to person. But for many, cheap stocks are simply those with solid fundamentals that have either been overlooked by the market or excessively knocked down by bad news.The one game you don't want to play is buying stocks just because they have fallen in price. While some may truly be great bargains, others fall for good reason. That reason can be anything from failing business models and weak management to overwhelming legal issues, changing tastes and obsolete technology.To separate the wheat from the chaff, we've asked a group of investment managers and market experts which stocks are in the "good bargain" category, which means they're down in price but still fundamentally sound and growing.Here are seven of their favorite cheap stocks to buy. Most of the names are familiar, which will provide an additional level of comfort. However, they all share a common thread of being down but far from out. SEE ALSO: 50 Top Stocks That Billionaires Love
I've said it before, while the Dow Jones Industrial Average may be a flawed index due to its price-weighting mechanisms, the index still has plenty of value for investors. After all, the index does represent some of America's largest and finest companies. Thanks to their large moats, strong cash flows and big dividends, Dow Jones stocks really are the bluest of the blue-chips and make great portfolio additions.However, the various shades of blue do vary.Thanks to the recent market hiccups, rising global tensions, the trade war and overall economic malaise, not all the Dow Stocks would be considered champions at this point. And in fact, a few of them downright stink. Misreads on trends coupled with the current global economic problems have made several stocks in the blue-chip index chronically underperform in recent weeks and in fact, years for some. That puts them firmly in the "don't buy camp."InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks to Sell in Market-Cursed September But how can you tell which Dow Jones stocks are big buys and which are downright sells? Luckily, here at InvestorPlace, we've done the leg work for you. Here are three of the Dow's biggest stocks to avoid. Dow Jones Stocks to Sell: 3M (MMM)Source: josefkubes / Shutterstock.com Percent Off 52-Week High: 26%The reason to buy industrial giant 3M (NYSE:MMM) stems from the fact the firm is so global in its revenues. A huge portion of its sales come from overseas. That has driven the stock's cash flows and profits in recent years. The reason to sell 3M is also that it's so global in its sales.As the trade war has dragged on, 3M has been hit hard by the overall slowing global economy. A prime example was its last earnings report. Despite a hefty share buyback program, earnings-per-share for this Dow Jones stock slipped over 37% year-over-year, while net revenues declined 2.6%. The vast bulk of the slippage in sales continues to be from Asia, Europe other emerging markets. These are the regions that drove sales in previous quarters. Moreover, the strong dollar and local currency fluctuations continue to hit 3M hard.This is a big deal going forward. With no end to the trade war in sight and major international economies -- such as Germany -- slowing way down/contracting, 3M could be between a rock and hard place. During its last conference call, the industrial stock warned things could get rough. Management is now guiding to earn $8.75 per share on the high-end -- a dip of 3.1% from its last EPS estimate.While 3M isn't in any danger of cutting its dividend and ending its long streak of payout increases, the continued dip in EPS could spell trouble for its pace of dividend jumps. And with a PEG ratio of nearly 2 and forward P/E of 18, MMM stock isn't exactly a bargain.With many of the catalysts for ownership now deteriorating and the stock relatively expensive, this is one of the Dow Jones stocks to avoid for the time being. IBM (IBM)Source: JHVEPhoto / Shutterstock.com Percent Off 52-Week High: 12%There are plenty of old school tech stocks that have pivoted correctly in the new paradigm. Dotcom leaders like Cisco (NASDAQ:CSCO) and Microsoft (NASDAQ:MSFT) have successfully changed their operations to better compete in the cloud and across many new trends in tech. And their investors have been rewarded.Then there's IBM (NYSE:IBM).Big Blue should be a leader. Unfortunately, IBM has managed to make plenty of missteps over the last decade. Missing key trends like the rise of cloud computing has continued to hurt the firm's bottom line. Revenues last quarter marked the fourth-straight quarterly revenue decline for the tech dinosaur. Based on full-year estimates for 2019, IBM will have seen its sales drop by nearly 19% over the last five years. That's just terrible.So, it's no wonder why IBM decided to buy out Red Hat to inject some growth into the firm for $34 billion. And there is potential for growth. Fellow InvestorPlace contributor David Moadel recently mentioned that the Dow Jones stock could be a major contender in open-source software and in the cloud. However, based on its estimates, IBM says Red Hat won't boost earnings until 2021 at the earliest. And given how lousy IBM has been at integrating acquisitions in recent history, the potential may not be realized.What's worse is that Big Blue recently suspended its lucrative buyback program to pay for the deal. Those buybacks have actually managed to reduce its share count by roughly 25% over the last few years. * 7 Low-Risk Mutual Funds to Buy Now In the end, there's a lot of risk for IBM and not much safety net anymore. Red Hat will take a ton of time to integrate and in the meantime, investors are getting nothing but declining sales while waiting. There's better tech stocks out there and this is one of the Dow Jones stocks to avoid. Caterpillar (CAT)Source: aapsky / Shutterstock.com Percent Off 52-Week High: 25%It's easy to pick on Caterpillar (NYSE:CAT) based on the trade war and continued lower demand from China. After all, China's massive expansion and infrastructure upgrades have long been a huge driver for construction equipment. So, with China slowing, CAT is in some hot water.The issue for the heavy-machinery firm is that it's not just woes from China that are hurting its bottom line. It turns out, construction spending across the board is starting to wobble in a big way. Both Cummins (NYSE:CMI) and Emerson Electric (NYSE:EMR) both recently warned that CAPEX spending is dropping in the U.S. as well. That CAPEX spending is also coming to the metals and mining industry as well as the sectors. The same could be said for agricultural and forester equipment. Overall demand for powerful diesel engines and other heavy machines is now dropping as the trade war has trickled on.This is a huge problem for CAT. Sales in the U.S. as well as key segments -- like energy -- have helped keep the profit engine growing and they have also helped it overcome many of the woes from China/Asia in general. But with many of these markets now seeing contraction and spending dwindle, CAT could be hit hard. And in fact, management is now predicting EPS come in at the lower end of their estimated guidance. If things continue to turn poor and the recession finally hits, the Dow Jones stock could be in a world of hurt.Now, CAT still pulls in a ton of cash flows and has seen rising sales. This has translated into a big 20% dividend boost and improved buyback program. But now that sales and cash flow growth have been muted in the new tariff-filled environment, that robust pace of dividend/buyback growth could slow if things start to really hit the fan.And for investors, that could make CAT a stock to place on their watchlist for now.As of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post 3 Dow Jones Stocks to Sell Right Now appeared first on InvestorPlace.
Roku (NASDAQ:ROKU) appears unstoppable. It has pulled back modestly from its recent $176.55 per share record high. However, at about $165 per share, Roku stock has risen by almost 65% since its August earnings report.Source: Michael Vi / Shutterstock.com However, with the massive run-up in ROKU, the price looks to have moved far ahead of both its current position and its near-term growth potential. Although the company will likely prosper long-term, at these prices Roku stock at best a trade. Roku Stock Seems UnstoppableWithout question, this company has logged some impressive accomplishments. It took what could have easily become a commoditized industry and turned itself into what my colleague Tezcan Gecgil calls "the pioneer of video streaming gadgets."InvestorPlace - Stock Market News, Stock Advice & Trading TipsGiven the lack of profit potential in selling hardware, the company's ad platform and now, the Roku Channel, drive the overwhelming majority of company revenues. * 7 Stocks to Buy In a Flat Market The Roku Channel cost the company its neutral stance between services such as Netflix (NASDAQ:NFLX), Amazon (NASDAQ:AMZN), and Disney's (NYSE:DIS) Hulu.Still, this has helped make this stock a growth machine, and the market has rewarded the company handsomely for it. The company may not earn a profit until at least 2021. Still, Wall Street forecasts revenue growth of 46.9% this year and 35.6% in fiscal 2020. ROKU and the FundamentalsThe equity has also proven all of my bearish predictions wrong. As a result, the ROKU stock price stands near record highs. Before the earnings announcement in August, I told traders to only buy as a speculative position on earnings. However, whenever I tell investors the stock has finished moving higher, it continues to rise.As it moves up, it separates itself further from the fundamentals. I do not expect ROKU to come in line with multiples and earnings growth for several years. However, the overall market does not typically perform well this time of year.Moreover, the U.S.-China trade war remains an ongoing issue. The equity trades at a forward price-to-sales (PS) ratio of just over 19, and almost 43 times its book value. At these levels, it has become priced for perfection.None of this means ROKU cannot keep moving higher. However, should the overall market turn or the company itself receives unexpected bad news, the equity would likely take a hard hit. Watch Insider SalesInvestors should also note that CEO Anthony Wood sold 35,000 shares at $155.06 per share on September 3rd. Other insider sales followed. Admittedly, CEO share sales can happen for numerous reasons. Also, the $5.4 million in revenue from the transaction amounted to a small fraction of his June sale of 400,000 shares for $41.3 million. However, this could point to doubts about ROKU in the near term.Again, I still like how the company has transformed the streaming space. If a fall swoon or a worsening trade war leads to a lower ROKU stock price, long-term investors should look at buying. However, at current prices, it has become a bet as to whether traders will take it higher or lower. The Bottom Line on Roku StockROKU has become unpredictable at current levels. I still expect the company to dominate the industry it created. I also believe that it will achieve new record highs long term. It remains very possible that those increases will even continue shorter term.However, such valuations have started to push ROKU into bubble territory. Once it falls significantly, it can take years, or sometimes decades, to recover.As a much younger trader who thought he could do no wrong, I once invested in Cisco Systems (NASDAQ:CSCO) during the years of the dot-com bubble. I held a nine-fold gain at the March 2000 peak only to see most of my gains disappear. Almost 20 years later, CSCO still has not recovered its 2000 price.Truly profiting from ROKU in the short term means knowing when to get out, as opposed to what time to buy. Perhaps following the example of the CEO would make for a wise decision.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 3 Artificial Intelligence Stocks to Buy * 7 Industrial Stocks to Buy for a Strong U.S. Economy * 3 Beaten-Down Bank Stocks to Buy and Hold for the Long Term The post At These Levels, Buying ROKU Stock Is Speculating Not Investing appeared first on InvestorPlace.
More than once over the past couple of decades, networking giant Cisco Systems (NASDAQ:CSCO) has been lumped in with other hardware stocks, and rightfully so. For the better part of its existence, Cisco stock has been an investment in networking hardware. Its business has been mostly dependent on enterprise-level IT upgrades.Source: Valeriya Zankovych / Shutterstock.com As the underlying technologies have changed, however, so too have Cisco's opportunities. It's still a hardware name to be sure, but it's also a software name. It's even becoming a recurring revenue platform.This paradigm shift didn't even come close to staving off a huge setback in August. CSCO stock fell from its July peak near $58 to last month's low around $46, with most of the selloff sparked by lackluster guidance for the quarter now underway. Headwinds in China also concerned shareholders.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe dip is ultimately an opportunity to step into a misunderstood and undervalued name. CSCO Stock Undervalued, UnderappreciatedThe post-earnings response was understandable.Cisco stock was already fighting a losing battle, peeling back from its July peak after announcing its intent to acquire Acacia Communications (NASDAQ:ACIA). Despite topping earnings and revenue estimates for the three-month stretch ending in July and pumping up the top line by 6%, earnings guidance of between 80 and 82 cents per share for its first fiscal quarter of 2020 wasn't the 83 cents analysts were modeling. Sales growth could also be flat for the quarter underway, following a 25% tumble in the previous quarter's China-driven revenue. Though the top end of Cisco's guidance was 2%, it was still short of consensus projections of 2.5%. * 7 Best Tech Stocks to Buy Right Now The steep 20% selloff, however, largely ignores the fact that Cisco stock is now trading at 18.7 times its trailing earnings and only 13.6 times its forward-looking income.There are cheaper stocks out there, but there aren't cheaper stocks out there like CSCO. Indeed, even the usual valuation measures don't apply without a footnote. In this case that footnote is $33.4 billion worth of liquid assets or outright cash sitting on Cisco's balance sheet, versus its market cap of $201 billion.The valuation also doesn't reflect the fact that, although it's been occasionally uneven thanks to new competition from the likes of Juniper Networks (NYSE:JNPR) and Arista Networks (NYSE:ANET), Cisco hasn't failed to produce some level of profit in any quarter for over a decade. That includes the 2008 recession prodded by the subprime mortgage meltdown.And that reliability is only poised to improve. Cisco Embraces SubscriptionsThe company has arguably touted the idea more than it's mattered yet. Nevertheless, recurring revenue is a key part of its new business model.For the record, it's actually been a piece of the Cisco strategy as far back as 2017. That's when the tech giant launched its first-ever subscription-based product leveraging its Catalyst 9000 networking platform. But, CEO Chuck Robbins explained in March that recurring revenue should make up 30% of the company's total business within the next three years.To that end, as of the recently ended quarter, software subscriptions made up 70% of total software revenue. Applications and services only accounted for a little more than one-third of Cisco's total business.It's not clear if the company's fiscal trajectory is on pace to reach the goal. The paradigm shift within the technology arena favors Cisco exceeding that goal rather than falling short of it.One only has to look at the evolution of cloud computing to see renting rather than owning is the new norm. Amazon (NASDAQ:AMZN) has built a multi-billion dollar business on the premise of providing access to remote servers to organizations that don't want a giant server bank on-site, or can't afford the cash needed to outright buy a data center.Cybersecurity service provider FireEye (NASDAQ:FEYE) has taken the idea a step further. It provides an entire suite of cloud-based digital security solutions that in the past would have been installed on-premise. Its customers enjoy the fact that for a small recurring fee, their service providers keep that cloud-based software, service and storage up-to-date.Amazon and FireEye like the fact that the underlying contracts make for predictable revenue.The trend dovetails nicely into Cisco's relatively new software-based routing platforms like its SD-WAN, which automatically remain up-to-date and secure without any major maintenance needed on the user's end. In the past, major improvements may have required a much more expensive purchase of new hardware. The Bottom Line for Cisco StockIt's all still a work in progress making it difficult to pinpoint where Cisco will be three years from now. Indeed, it's difficult to say where the company will be one year from now. To the extent its risk and potential can be weighed, however, Cisco stock looks like a buy-worthy bargain here.Headlines spurred an emotional response last month, which resulted in a knee-jerk selloff. Weakness in China didn't help in that regard. A closer inspection of the numbers would have made clear that Asia still only accounts for 15% of total revenue.Either way, with a potential end to the tariff war looming at the same time the company is just getting very, very good at revenue-steadying subscriptions, this beaten-down iconic name just might make for a decent addition to most portfolios.As of this writing, James Brumley held a long position in FireEye. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 3 Artificial Intelligence Stocks to Buy * 7 Industrial Stocks to Buy for a Strong U.S. Economy * 3 Beaten-Down Bank Stocks to Buy and Hold for the Long Term The post Buy Cisco Stock for the Bargain, Stick With it for the Stability appeared first on InvestorPlace.
If you were thinking about investing in it, IBM (NYSE:IBM) stock looks fairly cheap right now. Its dividend yield is now very high at 4.6%, assuming its $6.48 annual rate stays unchanged. And now that IBM's $34 billion purchase of Red Hat has closed, the dividend is looking even more secure.Source: JHVEPhoto / Shutterstock.com In a presentation to analysts on Aug. 2, IBM showed that Red Hat would raise IBM's free cash flow by about half a billion dollars in 2020 and $1 billion in 2021, after interest costs from the purchase.This is important, since as I pointed out in my previous article on IBM, the company has stopped its buyback program in order to pay down the acquisition debt and maintain the dividend.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIBM's annual $6.48 per share dividend costs $1.4 billion each quarter, or $5.6 billion annually. In Q2 IBM reported FCF of $2.4 billion, or $9.6 billion at an annual rate. That still leaves $4 billion for IBM to pay down the $34 billion in debt principal that it took on to buy Red Hat. Dividend Yield Comparison on IBM StockCompared to some other large software stocks, IBM's dividend yield looks very attractive. After all, Microsoft (NASDAQ:MSFT) stock yields 1.3%, Oracle (NYSE:ORCL) yield 1.8%, and Cisco Systems (NASDAQ:CSCO) yields 2.9%. * 7 Industrial Stocks to Buy for a Strong U.S. Economy But, as I pointed out in my previous article, IBM's dividend growth rate has been slowing. These other stocks have had growing dividends, and they also repurchase their shares. Their buyback yields are also attractive, giving them high total yields.So, on the pro side, IBM's high dividend yield is now very secure with the Red Hat acquisition. But don't expect its dividend rate to increase much, if at all, since IBM now has to pay down its debt. FCF Yield ComparisonsOne bright spot is that IBM sports a very high free cash flow yield compared to its close peers. IBM's $9.6 billion FCF divided by its $125 billion market value gives IBM stock a 7.7% FCF yield. Microsoft's FCF yield is 3%, while both ORCL and CSCO stock have a 5.9% FCF yield.This means IBM's free cash flow is not being valued as highly as its peers -- which makes IBM stock attractive on a relative basis. International Business Machines Stock has Performed WellThe IBM stock price has risen 24% so far this year. This is better than most of its close peers. MSFT is up 39% YTD, but ORCL is up 19% and CSCO gained 14%. Given that the IBM is relatively undervalued on both a dividend yield and FCF yield basis, it's realistic to assume that the IBM stock price will continue to perform well.Meanwhile investors will have fun collecting IBM's relatively higher dividends. Those dividends are now even more secure with the extra free cash flow that the Red Hat acquisition provides.Moreover, once IBM has made a dent in its Red-Hat-related debt in several years, you can expect that IBM will resume buying back its shares again. That will have numerous benefits to investors. Moreover it will increase IBM's overall total yield (dividend yield plus buyback yield).In sum, IBM stock's dividend yield looks very attractive here and is much more secure with the Red Hat acquisition.As of this writing, Mark Hake, CFA does not hold a position in any of the aforementioned securities. Mark Hake runs the Total Yield Value Guide which you can review here. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 3 Artificial Intelligence Stocks to Buy * 7 Industrial Stocks to Buy for a Strong U.S. Economy * 3 Beaten-Down Bank Stocks to Buy and Hold for the Long Term The post IBM Stock Looks Cheap Here appeared first on InvestorPlace.
SAN JOSE, Calif. , Sept. 6, 2019 /PRNewswire/ -- Cisco (NASDAQ: CSCO) today announced it has completed the acquisition of privately-held Voicea*, headquartered in Mountain View, CA. Voicea is the creator ...
Sep.11 -- John Chambers, founder of JC2 Ventures LLC and former chief executive officer of Cisco Systems Inc., discusses Oracle Corp. CEO Mark Hurd taking a leave of absence, global trade tensions, the health of the IPO market and alternative food sources with Bloomberg's Taylor Riggs on "BloombergTechnology."