Cisco Systems, Inc. (NASDAQ:CSCO) Stock Still Has Upside Opportunity
Denver, CO, 01/13/2013 (Avauncer.com) – Cisco Systems, Inc. (NASDAQ:CSCO) has lost much of its value when you look at what it was in its heydays in 2000. The trouble that bedevils the company are linked to the rise of competitors who are staging price war to deny the company opportunity in emerging markets where customers are sensitive to price.
However, the stock has shown strength to rise significantly over the coming year. Barron’s view on the stock is an optimistic one, suggesting possible upsurge of 20 percent for CSCO. Note that this bullish view does not overlook the fact that the company is under pressure in month equipment and software-defined networks markets. However, this potential is seen in the company’s present valuation, and how this value factors in the potential impacts on the stock.
When Cisco’s stock begins to scale up, it would not be based on nothing as is presently the case with marijuana-related stocks. The company has growth opportunity in software-defined network which is widely presently in proof-of-concept stage. This means that it should turn into a sustainable and reliable revenue opportunity for the company ones its enterprise adoption starts.
Moreover, CSCO is still poised to make gains in its networking equipment business, especially in Europe where competition impact has been limited. The company’s push to Internet of Things is not only gaining steam, but is also expected to become a reliable source of revenue for the company.
All these revenue prospects play into strengthening the stock and thus the Barron’s bullish prediction.
The future and the present
As mentioned earlier, Cisco Systems, Inc. (NASDAQ:CSCO) is currently a pale shadow of its former self. In its heydays, the stock traded around $80 per share and revenue soared to as high as 56 percent. Today the stock trades in the range of $20 per share with annual revenue growth of about 5 percent while profits have declined to near half of what they used to be over the last decade.
While the company has a lot of ground to cover if it is to return to its former glory days, there is no doubt that the management is trying hard to squeeze value for investors under the present condition. In any case, the stock’s return on equity is nearly 18 percent today, above the 14 percent that it used to be in 2000.DISCLAIMER: This content is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment. - Contact us at support @ avauncer dot com if you have any questions or comments.