Cisco Systems Inc (CSCO) Gains Contribute To Strong Performance

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 higher today making it today's featured computer hardware winner. The industry as a whole closed the day up 0.7%. By the end of trading, Cisco Systems rose 40 cents (1.9%) to $20.97 on average volume. Throughout the day, 27.1 million shares of Cisco Systems exchanged hands as compared to its average daily volume of 35.4 million shares. The stock ranged in a price between $20.58-$21.05 after having opened the day at $20.64 as compared to the previous trading day's close of $20.57. Other companies within the Computer Hardware industry that increased today were: Dot Hill Systems Corporation ( HILL), up 10.7%, XRS ( XRSC), up 8.5%, Concurrent Computer Corporation ( CCUR), up 7.5%, and Stratasys ( SSYS), up 6.9%.
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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 $109.89 billion and is part of the technology sector. The company has a P/E ratio of 11.8, below the S&P 500 P/E ratio of 17.7. Shares are up 4.7% year to date as of the close of trading on Monday. Currently there are 21 analysts that rate Cisco Systems a buy, two analysts rate it a sell, and seven 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, largely solid financial position with reasonable debt levels by most measures and notable return on equity. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the negative front, OCZ Technology Group ( OCZ), down 8.3%, Dataram Corporation ( DRAM), down 7.1%, Black Box Corporation ( BBOX), down 3.4%, and Identive Group ( INVE), down 3.2%, were all laggards within the computer hardware industry with Lexmark International ( LXK) being today's computer hardware industry laggard.

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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