From Nasdaq: 2025-05-22 15:00:00

Cisco Systems (CSCO) shares are trading at a premium, with a Value Score of D and a forward 12-month price/sales ratio of 4.3X, higher than the industry average of 4.11X. Compared to peers like Extreme Networks (EXTR) and NETGEAR (NTGR), CSCO is trading at a premium. In the past month, CSCO shares appreciated 13.6%, underperforming the industry and sector returns. The company’s aggressive AI push and strong security dominance in Q3 fiscal 2025 are notable, with security revenues jumping 54% year over year. Total product orders grew 20% year over year in Q3, with Networking product orders showing strong growth. The partnership with NVIDIA for AI-driven solutions is expected to boost revenues. Cisco’s security business is thriving, with strong demand for Secure Access, Hypershield, and XDR solutions. The company has provided positive guidance for fiscal 2025, expecting revenues of $56.5-$56.7 billion and non-GAAP earnings of $3.77-$3.79 per share. Despite a challenging macroeconomic environment, Cisco remains well-positioned for growth with its expanding portfolio and AI initiatives. The stock is currently trading above the 50-day and 200-day moving averages. However, stiff competition in the networking and security space could pose challenges. Cisco’s Zacks Rank of #3 suggests a hold rating for investors. The company offers a $1 trial to access all Zacks picks, showcasing its strong portfolio services and successful track record.



Read more at Nasdaq: Is Cisco Stock’s 4.3X PS Still Worth it? Buy, Sell, or Hold?