Highlighted Post-Market Laggard: Cisco Systems (CSCO)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Cisco Systems ( CSCO) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Cisco Systems as such a stock due to the following factors:

  • CSCO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $792.1 million.
  • CSCO is down 5.3% today from today's close.

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More details on CSCO:

Cisco Systems, Inc. designs, manufactures, and sells Internet protocol (IP) and other products related to the communications and information technology industry worldwide. The stock currently has a dividend yield of 2.9%. CSCO has a PE ratio of 12.6. Currently there are 22 analysts that rate Cisco Systems a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Cisco Systems has been 35.3 million shares per day over the past 30 days. Cisco Systems has a market cap of $126.2 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.33 and a short float of 0.9% with 1.48 days to cover. Shares are up 19.3% year to date as of the close of trading on Tuesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Cisco Systems as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, revenue growth, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 34.28% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CSCO should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • CISCO SYSTEMS INC has improved earnings per share by 16.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CISCO SYSTEMS INC increased its bottom line by earning $1.86 versus $1.49 in the prior year. This year, the market expects an improvement in earnings ($2.11 versus $1.86).
  • CSCO's revenue growth trails the industry average of 27.8%. Since the same quarter one year prior, revenues slightly increased by 6.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Although CSCO's debt-to-equity ratio of 0.27 is very low, it is currently higher than that of the industry average. Along with this, the company maintains a quick ratio of 2.71, which clearly demonstrates the ability to cover short-term cash needs.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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