Cisco Systems Inc. (CSCO:NSD) Analysts rate as a Buy, Fundamental Analysis is Bullish

STA Research
by: STA Research
Cisco Systems Inc.

Based on the Cisco stock forecast from 18 analysts, the average analyst CSCO target price is USD 53.36 over the next 12 months. Cisco Systems Inc’s average analyst rating is Buy. Stock Target Advisor’s own stock analysis of Cisco stock forecast is Bullish, which is based on 11 positive signals and 4 negative signals. At the last closing, CSCO stock price was USD 46.66CSCO stock price has changed by +1.74% over the past week, +3.59% over the past month and -15.39% over the last year.

Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China.  It provides infrastructure platforms, including networking technologies of switching, routing, wireless, and data center products that are designed to work together to deliver networking capabilities, and transport and/or store data.  It serves businesses of various sizes, public institutions, governments, and service providers. The company sells its products and services directly, as well as through systems integrators, service providers, other resellers, and distributors. Cisco Systems, Inc. has strategic alliances with other companies. Cisco Systems, Inc. was incorporated in 1984 and is headquartered in San Jose, California.

 

What we like:

High market capitalization:

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns:

CSCO stock price has performed well, on a risk adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

Low volatility:

The annual returns for CSCO stock price have been stable and consistent compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior total returns:

CSCO stock price has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

Underpriced compared to earnings:

CSCO target price is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior return on equity:

Cisco stock forecast has shown that the company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization:

CSCO stock forecast has shown that the company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets:

Cisco stock forecast has shown that the company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow:

CSCO stock forecast has shown that the company had positive total cash flow in the most recent four quarters.

Positive free cash flow:

Cisco stock forecast has shown that the company had positive total free cash flow in the most recent four quarters.

Superior Dividend Growth:

Cisco stock dividend has shown top quartile growth in the previous 5 years compared to its sector.

 

What we don’t like:

Overpriced compared to book value:

CSCO target price is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis:

CSCO target price is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Overpriced on free cash flow basis:

CSCO target price is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Revenue Growth:

Cisco stock forecast has shown below median revenue growth in the previous 5 years compared to its sector

Disclaimer

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