One undervalued stock, Cisco Systems (CSCO) - Get Cisco Systems, Inc. Report , is profiting from three of technology's fastest-growing markets: cybersecurity, data analytics and the Internet of Things.
Let's look at the rising trends the old-school tech company is tapping.
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Any way you look at it, 2015 was a dreadful year for cybersecurity, with data heists everywhere, from infidelity-dating website Ashley Madison to the federal government's Office of Personnel Management.
So it should come as no surprise that information technology security spending is on the upswing and will grow at a compound annual rate of 9.8% between 2015 and 2020, according to research firm Markets and Markets.
Analytics, which is the processing of reams of data to tease out patterns and trends, will also soar.
Companies will increase their spending on marketing analytics alone by 73% in the next three years, according to VentureBeat.
And then there is the IoT, which involves connecting everything from home thermostats to industrial lighting to the Internet.
IT research firm Gartner sees the number of connected "things" jumping 30% this year alone, with 5.5 million being added every day.
Founded in 1984, Cisco has connectivity in its DNA. Its founders, Leonard Bosack and his now ex-wife, Sandy Lerner, managed computer systems at Stanford University and aimed to develop a router that would let different networks communicate with each another.
Fast-forward to today, and Cisco, which is based in San Jose, Calif., and boasts a $141.96 billion market capitalization, dominates the market for routers and other networking gear that forms the backbone of the Internet.
Plenty of tech pioneers, such as International Business Machines and Hewlett-Packard, which recently split into Hewlett Packard Enterprise and HP, have struggled to keep pace in the fast-changing tech sector. But Cisco continues to perform well.
In Cisco's fiscal second quarter, which ended Jan. 23, security was its fastest-growing business, with sales jumping 18% from a year earlier, helping push overall revenue up 2%, while adjusted earnings per share rose 8%. Both the top and bottom lines beat Wall Street's forecasts.
Cisco has bolstered its internal growth with acquisitions, including Jasper Technologies, whose IoT platform allows companies to connect devices over cellular networks, then manage them using its proprietary platform. Last fall, Cisco snapped up network-security firm Lancope, a provider of analytics software that monitors changes in network traffic to predict and head off attacks.
The networking giant is slated to report fiscal third-quarter earnings on May 18. The average analyst forecast calls for a profit of 55 cents a share, up just a penny from a year earlier, but don't bet against an upside surprise, as Cisco has exceeded expectations in each of the past eight quarters.
Meantime, the stock trades at just 13.4 times Cisco's latest 12 months of earnings, a discount to its industry, at 17.8. Analysts' average 12-month price target is $29.50, which isn't far above stock's current level of $28.23, but the highest estimate of $37 would represent a 30% gain.
Even if the stock makes little headway in the next year, investors' patience will be rewarded, thanks to Cisco's healthy dividend, which yields 3.7%. This is also a company with a solid history of dividend growth, having boosted its quarterly payout by 333% in the past five years.
So circle May 18 on the calendar, but make sure to buy shares of this "old-tech" innovator well before then.
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This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.