Why Cisco Systems (CSCO) Stock Is Soaring Before the Bell

NEW YORK (TheStreet) -- Cisco Systems (CSCO) stock is soaring in pre-market trading after the tech company reported third-quarter earnings and revenue higher than analysts expected. 

Before market open, shares had climbed 6.5% to $24.30.

Over the three months to April, Cisco earned 51 cents a share, 3 cents higher than analysts surveyed by Thomson Reuters expected. Revenue of $11.55 billion exceeded estimates of $11.36 billion. 

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TheStreet Ratings team rates CISCO SYSTEMS INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate CISCO SYSTEMS INC (CSCO) a BUY. This is driven by multiple 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, 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."

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