This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

What Options Traders Expect When Cisco Reports

After the last earnings release, Cisco shares fell about 3.76%.

The majority of analysts believe Cisco continues to offer a buying opportunity, with 23 of the 42 analysts covering the company giving a buy recommendation. Fifteen are taking a more cautious approach, and rate it a hold. As of the last update I have, four analysts recommend selling some or all holdings. New investors from a year ago are happy, and analysts rating this company a buy have called it correctly. The shares have moved higher 11% over the last 52 weeks, compared to a 20.3% return for SPDR S&P 500 ETF (SPY). Analysts are calling for a price target of $23.84.

Cisco is one of my four technology dividend kings. The list of royalty includes Microsoft (MSFT), Intel (INTC) and AT&T (T). I love buying these dividend winners on dips. I'm especially bullish with Microsoft and have been for over a year, compared to my bearish outlook for Amazon (AMZN).

If you intend to buy-and-hold beyond a year, the recent decline from the $26 highs offers an attractive entry. Cisco pays an annual dividend of 76 cents for an effective yield of about 3.3%.

The company began paying a quarterly dividend in 2011 at 6 cents per share. Since that time, the rate has rocketed higher to almost three times as much. Few large companies, if any, have increased as fast.

I consider short sellers the smart money on Wall Street. They never sleep, and they are perpetually seeking out any market inefficiency or business flaws to exploit. They're not finding an opportunity with Cisco and only 1.5% of the shares are shorted. That's about as convincing as an investor will find.

I like Cisco, and I especially like the low forward earnings multiple as a long-term holding.

CSCO Revenue (Quarterly) Chart

At the time of publication, Weinstein had no positions in securities mentioned.

Follow @RobertWeinstein

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

>>Read More: The Company Most Likely to Collapse in 2014

>>Read More: Why LinkedIn Is Worth Buying Below $200

>>Read More: How the Consumer Wins In the Wireless Wars

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
CSCO $29.31 1.24%
AAPL $132.04 1.87%
FB $80.55 1.53%
GOOG $539.79 1.40%
TSLA $247.43 -0.01%

Markets

DOW 18,162.99 +121.45 0.67%
S&P 500 2,123.48 +19.28 0.92%
NASDAQ 5,106.5930 +73.8420 1.47%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs