Amazon.com, Inc. (AMZN), VMware, Inc. (VMW): Why Cisco Systems, Inc. (CSCO)’s Still a Buy

Here, VMware, Inc. (NYSE:VMW) rules. Some 200 service providers offer clouds built on VMware, Inc. (NYSE:VMW)’s vCloud, including behemoths like Verizon. In March, VMware, Inc. (NYSE:VMW) announced plans to launch vCloud Hybrid Services, its own public cloud platform. Moreover, using third-party project management, VMware, Inc. (NYSE:VMW)’s goal is to provide customers with consistent capacity management, performance management, and orchestration between clouds. As yet, Amazon.com, Inc. (NASDAQ:AMZN) hasn’t looked into third-party management, but that’s likely to change.

A changing Cisco

Cisco is continually changing and is always on the prowl for companies that will complement and enhance its businesses. With roughly $45 billion of cash on the books , more strategic deals are expected. Chambers told CNBC that his approach to acquisitions is “aggressive.” He also defended the job cuts as “realigning resources to look where our growth opportunities would be.” Chambers continued, saying the move was made “because the market is moving so fast.”

Cisco is staying ahead of the competition by recognizing changes before they occur. “We literally are investing for the future,” Chambers added. All of that is key for an innovative and futuristic tech company and why Cisco looks so appealing.

Cisco Systems, Inc. (NASDAQ:CSCO) has a market cap of nearly $130 billion, trades at a modest P/E, of 13 and yields a very attractive 2.80%. In its heyday, during the dot-com boom, Cisco was a volatile high-flyer. Now, the company is a more like a blue-chip tech bellwether that is not so much about growth, but earnings.

Boring? Maybe a little,  but something boring can be a beautiful thing for investors.

 The article Why Cisco’s Still a Buy originally appeared on Fool.com and is written by Diane Alter.

Diane Alter has no position in any stocks mentioned. The Motley Fool recommends Amazon.com, Cisco Systems, and VMware. The Motley Fool owns shares of Amazon.com and VMware.

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