Aug
5
Written by:
Steve Patterson
8/5/2009 11:34 AM
Cisco Systems (CSCO) No Longer a Growth Stock
Cisco used to be one of the great Internet/Technology growth stocks that was growing in the double digit range year after year. But that is no longer the case with revenue declining and earnings falling in the current quarter and projected to fall in the following quarters.
Cisco Reports
Cisco is set to report fourth quarter earnings after the bell today and could beat low expectations for the fifth time in a row. Analysts recently upgraded their expectations for the quarter from 28 cents a share to 29 cents a share. Yet this represents a drop of 28% from the same quarter last year.
Revenue
Revenue at Cisco is also declining compare to prior years with the current quarter falling 18% and the year looking to fall 9% overall. Cisco is considered a gauge of overall IT spending with it’s routers and switches fueling the growth of information sharing and the Internet itself. But these markets have matured while Cisco has tried to push into other areas with better growth.
Stock Rally and P/E
Cisco’s stock has rallied from a six month low of $13.62 a share to a recent high of $22.57. The stock could continue to move higher on expectations of a rebound in tech spending. But the numbers currently do not show growth and once the company’s price to earnings (P/E) ratio reaches an unsustainable level, the stock should return to levels closely inline with it’s growth rate.
© 2009 FastSwings.com
17 comment(s) so far...
Re: Cisco Systems (CSCO) No Longer a Growth Stock
Did Cisco just flops out the market? Still keeping the stats up, I'm on their 2nd module though.
By Florida Wedding photographer on
8/5/2009 5:37 PM
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Re: Cisco Systems (CSCO) No Longer a Growth Stock
Cisco beat the numbers tonight but fell as the future projection didn't please investors.
By Steve on
8/5/2009 11:05 PM
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Re: Cisco Systems (CSCO) No Longer a Growth Stock
interesting article,..
thanks for post
By Harley Accessories on
8/6/2009 1:13 AM
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Re: Cisco Systems (CSCO) No Longer a Growth Stock
thank you very muchh for sharing info!
By students on
8/7/2009 9:19 AM
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Re: Cisco Systems (CSCO) No Longer a Growth Stock
It happens, sooner or later.. I suppose we should expect a more or less stable stock in the near future.
By Leopold on
8/7/2009 10:17 AM
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Re: Cisco Systems (CSCO) No Longer a Growth Stock
Bummer. Thanks for the info.
By Sioux City used cars on
8/7/2009 12:03 PM
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Re: Cisco Systems (CSCO) No Longer a Growth Stock
Ta Ta, Cisco. Quite an upheaval economy lately
By registry cleaner reviews on
8/7/2009 1:36 PM
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Re: Cisco Systems (CSCO) No Longer a Growth Stock
Hmm. Interesting indeed. Let's just say that I'm glad I do not have $ invested in the stock market.
By regcure review on
8/7/2009 1:37 PM
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Re: Cisco Systems (CSCO) No Longer a Growth Stock
How can you NOT be in the market? You gonna just live off the government?
By Wayne on
8/11/2009 10:58 AM
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Re: Cisco Systems (CSCO) No Longer a Growth Stock
Everyone is facing some unpleasant events at work (even if those events are just talking about so many companies going down). There is no doubt for me that the times of worse economical results are over. It can be only better now, because every crisis has its own maximum point after which the economy starts to grow again. This is just the way it is, world economy always faces ups and downs, rises and falls. There is nothing surprising about that. All we can do is trying to make those rises longer and falls shorter.
By Hurt Tkanin on
8/13/2009 2:45 AM
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Re: Cisco Systems (CSCO) No Longer a Growth Stock
If you can get shares at this current time you'll make a killing when the market recovers. Good time to jump on board in my opinion.
By Payday Loans on
8/13/2009 2:23 PM
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By chat on
8/14/2009 8:02 AM
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Cisco Systems (CSCO) No Longer a Growth Stock
If to be honest Cisco Systems are reliable. I love them for this very much.
By Payday Loan on
8/14/2009 9:30 AM
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Re: Cisco Systems (CSCO) No Longer a Growth Stock
Nice article and the tips, the website very good.
thanks for sharing.
By Hospedagem on
8/19/2009 2:51 PM
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Re: Cisco Systems (CSCO) No Longer a Growth Stock
Cisco is probably as stable as any Blue Chip.
By Wink on
8/19/2009 4:05 PM
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Re: Cisco Systems (CSCO) No Longer a Growth Stock
At some point you become so big you have hard time growing anymore. But that's a high quality problem to have ;)
By Lowest brokerage fees on
8/27/2009 2:22 PM
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Re: Cisco Systems (CSCO) No Longer a Growth Stock
Very thoughtfull post. It should be very much helpfull
Thanks,
Steve
By Annuity Rates on
10/4/2009 11:15 PM
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