Cisco Systems, Inc. (NASDAQ-CSCO) is the world’s largest computer company, dominating the computing industry in networking equipment. The company manufactures and develops Ethernet and ATM switches, routers, VoIP gateways, and IP phones. The company also develops, manufactures and sells network hardware, telecommunications equipment and other high-technology services and products. Through its subsidiaries, such as OpenDNS, WebEx, Jasper. Cisco Systems, Inc (NASDAQ-CSCO) specializes in domain security and energy management. The company was founded in December 1984 by a group of researchers from Stanford University and is headquartered in San Jose, California, USA. The company’s CEO is Mr. Chuck Robbins. The company employs its 84,900 tribal workers.
Cisco Systems, Inc. has become a very attractive stock to buy for private investors and multinational investment corporations primarily due to the stock’s high 2024 favorability rating. Why is CSCO the best choice? Cisco currently has the general public on its side as well as market leadership. The company had a tough year previous year in 2022 but rebounded very quickly last year. Global analysts expect revenue growth to slow to single digits this year. However, we are still talking about revenue growth in 2024. This is due to rising margins, but share buybacks should ensure further EPS growth. In fiscal year 2023, Cisco repurchased $4.2 billion worth of its common stock. The company increased total sales 11% year-over-year to $56.998 billion in fiscal year 2023. Excluding all expenses, the company earned a 7% higher net profit of $12.613 billion year-over-year. The company also said it achieved record sales and earnings despite a highly volatile macro environment affected by wars, social issues, inflation, rising interest rates and the like.
Among other things, during the pandemic, the company acquired ThousandEyes for Internet monitoring, which was considered the best Internet monitoring company in the industry. Among other things, it also recently opened the Cisco Networking Cloud , where individual customers can access information about Catalyst Switching, Wi-Fi, networking with software, AI, and network security from a single repository. Cisco System Inc has also invested in the security of its services, and the company has appointed Jeetu Patel as executive vice president for this area. The new VP has initiated this transformation of Cisco Security, and has hired Raj Chopra as chief product officer for security.
Cisco Systems, Inc. (NASDAQ-CSCO) also regularly pays an attractive, quarterly dividend to its shareholders. The dividend yield is currently 3.11% per annum, and the actual dividend amount has been approved by the company’s general meeting of shareholders at $0.39 per share. The recent fact that Cisco Systems, Inc. (NASDAQ-CSCO) has released its business outlook for this year has made the title very attractive for buying shares by private investors and multinational investment corporations, where the share price can be expected to rise in the short to medium term investment horizon, according to analysts at brokerage firms and financial strategists at investment banks, where the average target price of the stock has been set at USD 52.75 per share. The high estimate average target price was set at $63 per share.
