Not available: Bear of the Day: Cisco Systems (CSCO)
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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.
Original: Bear of the Day: Cisco Systems (CSCO)