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 leader 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 $688.4 million.
- CSCO is up 3.5% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in CSCO with the Ticky from Trade-Ideas. See the FREE profile for CSCO NOW at Trade-Ideas 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 3.3%. CSCO has a PE ratio of 15.3. Currently there are 18 analysts that rate Cisco Systems a buy, 1 analyst rates it a sell, and 9 rate it a hold. The average volume for Cisco Systems has been 37.2 million shares per day over the past 30 days. Cisco Systems has a market cap of $119.5 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.26 and a short float of 1.4% with 2.51 days to cover. Shares are up 1.9% 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 reasonable valuation levels, increase in stock price during the past year, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Highlights from the ratings report include:
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- CISCO SYSTEMS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. 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 ($1.99 versus $1.86).
- Despite currently having a low debt-to-equity ratio of 0.31, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that CSCO's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.42 is high and demonstrates strong liquidity.
- The gross profit margin for CISCO SYSTEMS INC is rather high; currently it is at 64.07%. Regardless of CSCO's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CSCO's net profit margin of 12.78% is significantly lower than the industry average.
- You can view the full Cisco Systems Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.