Is Cisco’s Stock A Good Buy Right Now?

With shares of Cisco (NASDAQ:CSCO) trading at around $19.01, is CSCO a Buy, a Wait and See, or a Stay Away? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

C = Catalyst for the Stock’s Movement

Despite beating earnings seven straight quarters in a row, Cisco’s stock hasn’t gained any ground over the past year. A lot of investors don’t like to put money into “Old Tech” companies. This title is unfair considering “Old Tech” companies are still young. Companies like Cisco that survived the .com bubble are extremely strong when it comes to fundamentals. Cisco, like many of its counterparts who survived that era, will be around for decades, if not longer.

It might be difficult to see growth here, but with an enormous amount of cash available ($45 billion), Cisco is going to have many opportunities to increase growth. Cisco is also using their large cash position to pay a 3% yield.

E = Debt to Equity Ratio is Low

Cisco has a debt-to-equity ratio of .31, which is low. As mentioned above, Cisco has $45 billion in cash. Long-term debt is $16.27 billion. Operating cash flow is close to $12 billion.

T = Technicals on the Stock Chart Are Unimpressive

While Cisco has outperformed the S&P 500 for the past month, it has underperformed the S&P 500 over the past three years.

Over the past month…

To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com

Premium Newsletters

Stock Investor Cheat Sheet

Stock Investor Cheat Sheet®

The ultimate Cheat Sheet for finding winning stock picks.
Learn More

Gold & Silver Newsletter

Gold & Silver

Don't miss one of the biggest bull markets in history! Covers Gold, Silver, Gold & Silver stocks, and miners.
Learn More

Commodities Premium Newsletter

Commodities Premium

There's always a bull market in some sector! Find the best opportunities in commodities.
Learn more

ETF Investing

ETF Investing

At last, a trading system that buys the right ETFs at the right time, time after time!
Learn more

Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business