Why Jim Cramer Likes Cisco

In a note to clients on Friday, JPMorgan's Samik Chatterjee wrote that Cisco's product momentum will continue in coming quarters and outperform investor expectations -- despite any effects from the prolonged partial government shutdown. Approximately 20% of Cisco's revenues come from the government, the analysts noted, but such headwinds are likely fleeting.

In Jim Cramer's exclusive monthly Members Call for ActionAlertsPLUS.com he laid out his 10 lessons from the bear market. Lesson six is, "In troubled times don't settle for stocks with an inconsistent management team and, instead, go for seasoned CEO's who know how to handle their enterprises no matter what the environment." To emphasize the importance of this lesson Jim highlighted Cisco (CSCO - Get Report) . He told members, "Cisco right now is perhaps my most favorite stock in the trust and I can't emphasize enough how [well] the company's being run in uncertain times."

Jim and the ActionAlertsPLUS team think Cisco will be a winner as it moves away fro hardware and focuses more on software and cybersecurity.

Cicso is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells Cisco? Learn more now.