NEW YORK (TheStreet) -- Shares of Cisco Systems (CSCO) may move higher Monday after it was reported the company was planning a cloud computing service for corporate customers, and plans to invest $1 billion over the next two years to as it looks to take on Amazon.com (AMZN) and others.
The Wall Street Journal reported the company will build data centers to help run the new service, called Cisco Cloud Services. Cisco plans to take advantage of companies' desire to rent computing services instead of buying and maintaining their own machines, according to the Journal.
Must Read: Warren Buffett's 10 Favorite Stocks
TheStreet Ratings team rates CISCO SYSTEMS INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about its recommendation:
"We rate CISCO SYSTEMS INC (CSCO) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows: