Jim Cramer says buying Cisco (CSCO) is a good long-term way to play a cybersecurity sector that's gotten Wall Street's renewed attention in the wake of this month's WannaCry ransomware incident.
"Cisco is offering a soup-to-nuts approach that is not what the other guys are offering," Cramer said in his exclusive monthly conference call with members of his Action Alerts PLUS club for investors. "This is really taking dead aim at Palo Alto Networks (PANW) ."
Cramer said that in addition to serving as a key cybersecurity player, Cisco boasts a "huge" amount of overseas cash that it will one day manage to repatriate to America. He added that the stock also currently offers about a 3.4% dividend yield, handily beating 10-year U.S. Treasury returns.
However, Cramer sees Cisco as a longer-term play, especially given that the stock recently traded near 52-week highs.
"I think that [CEO] Chuck Robbins is doing it and succeeding -- but it's not going to happen overnight," Cramer said. "I don't like to buy things after they just were at like a 52-week high, but I think Cisco is great longer term."
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Editors' pick: Originally published May 19.
Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long CSCO.