From Nasdaq: 2024-05-21 05:35:00

Cisco Systems (NASDAQ: CSCO) surpassed analyst expectations in its quarterly report but saw a 13% drop in revenue, despite acquiring Splunk. The company is transitioning to focus on recurring revenue, with subscriptions accounting for 54% of total revenue in the third quarter. Cisco projects improved product orders and revenue growth in the upcoming fiscal year.

Although Cisco’s stock may appear inexpensive, the company faces challenges from competitors like Arista Networks. Despite being dominant in certain markets, Cisco is expected to grow slowly on average. Investors should weigh the potential returns against the S&P 500 Index. The stock could be a suitable long-term investment for those seeking steady growth and a dividend yield of over 3%.

Considerations before investing in Cisco Systems include the analysis by Motley Fool Stock Advisor, which did not include Cisco in its list of top 10 stocks for investors. The service offers a strategy for success, stock picks, and has outperformed the S&P 500 since 2002. Past recommendations like Nvidia have yielded substantial returns. Investors should evaluate the stock within their overall portfolio strategy.



Read more at Nasdaq: Is Cisco Stock a Buy After Slumping Last Week?