Cisco Systems Inc (CSCO): Today's Featured Computer Hardware Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Cisco Systems ( CSCO) pushed the Computer Hardware industry lower today making it today's featured Computer Hardware laggard. The industry as a whole closed the day down 1.7%. By the end of trading, Cisco Systems fell 38 cents (-2.2%) to $16.83 on average volume. Throughout the day, 55.6 million shares of Cisco Systems exchanged hands as compared to its average daily volume of 38.7 million shares. The stock ranged in price between $16.78-$17.36 after having opened the day at $17.22 as compared to the previous trading day's close of $17.21. Other companies within the Computer Hardware industry that declined today were: iGo ( IGOI), down 25.8%, Universal Display Corporation ( PANL), down 17.9%, Mitek Systems ( MITK), down 11%, and Acorn Energy ( ACFN), down 9.4%.
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Cisco Systems, Inc. designs, manufactures, and sells Internet protocol (IP) based networking and other products related to the communications and information technology industries worldwide. Cisco Systems has a market cap of $92.69 billion and is part of the technology sector. The company has a P/E ratio of 11.7, below the S&P 500 P/E ratio of 17.7. Shares are down 3.3% year to date as of the close of trading on Wednesday. Currently there are 19 analysts that rate Cisco Systems a buy, no analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates Cisco Systems as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, notable return on equity and attractive valuation levels. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, XRS ( XRSC), up 5.8%, Dot Hill Systems Corporation ( HILL), up 4.7%, Identive Group ( INVE), up 3.4%, and AU Optronics Corporation ( AUO), up 3.3%, were all gainers within the computer hardware industry with Stratasys ( SSYS) being today's featured computer hardware industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the computer hardware industry could consider iShares Dow Jones US Technology ( IYW) while those bearish on the computer hardware industry could consider ProShares Ultra Short Semiconductor ( SSG).

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