The San Jose, CA-based company designs, manufactures, and sells IP-based networking products and services worldwide.
"We look forward to furthering our digitization efforts, contributing to talent development and GDP growth opportunities in China," Cisco CEO John Chambers said.
Cisco signed a memorandum of understanding with China's National Development and Reform Commission (NDRC) to expand investment, particularly focusing on equity investment, R&D and job creation, in order to promote the development of a high tech industry in China.
Additionally, the company signed with the Association of Universities of Applied Sciences to advance the training of information and communications technology talent, Cisco said.
Separately, TheStreet Ratings team rates CISCO SYSTEMS INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate CISCO SYSTEMS INC (CSCO) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, notable return on equity, reasonable valuation levels and increase in net income. We feel its strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- CSCO's revenue growth has slightly outpaced the industry average of 0.6%. Since the same quarter one year prior, revenues slightly increased by 5.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. 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.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Communications Equipment industry and the overall market, CISCO SYSTEMS INC's return on equity exceeds that of both the industry average and the S&P 500.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Communications Equipment industry. The net income increased by 11.4% when compared to the same quarter one year prior, going from $2,187.00 million to $2,437.00 million.
- You can view the full analysis from the report here: CSCO Ratings Report