Cisco Systems, Inc. (CSCO)’s Growth Should Continue With an Improving Economy

I will be keeping an eye on Juniper’s product development to judge when it will start seeing better results and its stock starts to move into the $20s. Alcatel Lucent SA (ADR) (NYSE:ALU) has a bunch of products, but it needs to focus on cutting expenses more. The last quarter was unimpressive, even though the earnings call touted it as progress in its plan to turn itself around. Saving $100 million is insignificant to me, and I want to see something more severe. The new restructuring plan is in the same line as the last one, but with a broader scope. Also, how quickly and decisively it is carried out will be important.

The first quarter was the last one for outgoing CEO Ben Verwaayen, and that might account for the lack of bold progress on its initiatives. The CEO change brings some more optimism to the plagued company since the new CEO, Michel Combes, has a history of cutting expenses. With the new plan laid out, it remains to be seen if this leads to any tangible effects. There is always pre-judging, but I do not see this new restructuring plan as a rehash. If it is carried out effectively, it can make all the difference.

Conclusion

Cisco Systems, Inc. (NASDAQ:CSCO) is a company that I really like for being a fantastic company with a less than fantastic share price history. I felt that given the current stock market environment, it would not remain in its near-$20 range much longer, and it has gone to $24. I did sell my calls and lock in gains from its post-earnings run, but will look for some new calls.

Juniper has a lot of issues surrounding it, but remains a profitable company. I will be watching it closely for a return to moderate revenue growth. For Alcatel Lucent SA (ADR) (NYSE:ALU), I will be paying attention to profits and cash flow. Networking is still soft, so it is fine if the company positions itself to profit from the growth that comes in the industry later.

The article Cisco’s Growth Should Continue With an Improving Economy originally appeared on Fool.com and is written by Nihar Patel.

Nihar Patel has the following options: Long Jan 2014 $2.5 Calls on Alcatel-Lucent (ADR) and Long Jan 2015 $3 Calls on Alcatel-Lucent (ADR). The Motley Fool recommends Cisco Systems (NASDAQ:CSCO). Nihar is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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