Subscription: Value Stocks
CSCO - looks like an attractive long term buy
Cisco Systems is the world’s leading supplier of data networking equipment and software. Its products include routers, switches, access equipment, and security and network management software.
We have not seen any good cash generating company on sale for a while!
CSCO has retraced 50% of wave ( 3 ) up here. That drop off the top made at 58.26 in July 2019 to the bottom made at 45.68 last week could be all of a large corrective wave ( 4 ) down.
Even if that drop is only the first leg down in subwave ( A ) of wave ( 4 ) down we can get a strong pullback in subwave ( B ) up that can easily retrace 50% of that drop.
CSCO - Weekly chart updated on 3-05-2020
Financial Strength
The company has exceptional fundamentals and inexpensive valuation. And the cherry on top of this cake is 3.5% dividend!
Operating Margin
28
Net
Margin
22.4
Return on Capital
531
Price-to-Free-Cash-Flow
11.5
Debt-to-Ebitda
1.4
Dividend Yield
3.5
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