February 04, 2024 — 01:00 pm EST

Below is Validea’s guru fundamental report for CISCO (CSCO). Of the 22 guru strategies we follow, CSCO rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields.

CISCO (CSCO) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 81% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.

The following table summarizes whether the stock meets each of this strategy’s tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy’s criteria.

MARKET CAP: PASS
STANDARD DEVIATION: PASS
TWELVE MINUS ONE MOMENTUM: NEUTRAL
NET PAYOUT YIELD: NEUTRAL
FINAL RANK: FAIL

December 22, 2023

Cisco (CSCO) is a multinational technology company specializing in networking hardware, software, and telecommunications solutions. However, it has been underperforming in the stock market, with its shares flat compared to the tech-heavy Nasdaq 100 ETF (QQQ) which is up more than 50% year-to-date. Cisco’s product orders are expected to decline by 20%, and it is facing stiff competition from companies like Arista Networks, Juniper Networks, and Hewlett Packard. The company’s industry group ranking is 235 out of 252, placing it in the bottom 7% of all industries tracked by Zacks. In light of these challenges, Cisco has been given a Zacks Rank of #5 (Strong Sell), and investors are advised to exercise caution. The company’s relative weakness, slowing growth, the competitive landscape, and weak industry group make CSCO shares less favorable at this time. Analysts suggest that Cisco will underperform even more if US equities retreat, and it is recommended as a stock to avoid at this juncture. Therefore, investors should consider alternative options and exercise caution before investing in Cisco at this time.