We recently published a list of Jim Cramer’s Latest Calls: 10 Stocks You Should Not Miss. In this article, we are going to take a look at where Cisco Systems Inc (NASDAQ:CSCO) stands against other Jim Cramer’s latest stock picks you shouldn’t miss.
Jim Cramer in a latest program on CNBC talked about earnings results from some of the top consumer and retail companies and said, as a compliment, that America has become a nation of “cheapskates” where consumers are unwilling to pay more when there’s little or no value.
“There’s something happening here, and what it is is exactly clear: we’ve become a nation of cheapskates. I say that as a compliment. Nobody gets away with charging too much anymore—not in this country, no matter the industry, perhaps even the drug industry. It’s happening now, it’s happening fast, and many companies are being left behind by the change. I see it everywhere I go—in the grocery store, online, in the mall, and, of course, in the stock market.”
Cramer talked about how restaurants that offer cheaper but quality meals are seeing a surge in their stock prices amid rising revenues. He also discussed how weight-loss drugs are impacting companies that sell alcohol products.
“American people are tired of paying up. They feel gou, they feel betrayed, they feel that the only thing about brand loyalty is that it isn’t worth a dime. They want a better deal. They’ll eagerly switch lifetime habits in order to save some money because prices are up so much that you feel like an idiot if you’re paying up.”
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For this article we watched latest programs of Jim Cramer aired on CNBC and picked 10 stocks he’s talking about. With each company we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Cisco Systems Inc (NASDAQ:CSCO)
Number of Hedge Fund Investors: 61
Talking about Cisco Systems Inc (NASDAQ:CSCO)’s latest results, Jim Cramer said that the company’s CEO Chuck Robbins sounded very bullish on the latest earnings call. However, Cramer was disappointed to see the stock falling after the results.
“Does anyone really know what they’re doing? Did they listen to the call? Did they watch Chuck? It was very bullish. The stock was up 30% between quarters, but this was the most diffusive he’s been, and it was enjoyable to hear him so upbeat.”
Why did Cisco Systems Inc (NASDAQ:CSCO) fall after the results? Cisco Systems Inc (NASDAQ:CSCO)’s revenue fell 5.7% YoY in the quarter. However, it was ahead of Wall Street estimates. Citi maintained its buy rating and lifted its price target to $64 from $62. Bank of America (BAC) kept its buy rating and increased its target price to $72 from $60.
Cisco Systems Inc (NASDAQ:CSCO) is set to grow on several organic growth catalysts. Market projections for networking equipment revenue are anticipated to grow from $61.45 billion to $86.02 billion between 2024 and 2030.
Cisco Systems Inc (NASDAQ:CSCO) is expected to report $3.65 in EPS this year and $4.22 in 2026, representing a 15.62% increase over the next two years. It trades at 15.81 times this year’s earnings and 13.67 times 2026 earnings. In comparison, the average of its peers trades at 68.47 times this year’s earnings and 42.29 times 2026 earnings. ANET, a similar company, trades at 44.15 times this year’s earnings and 33.7 times 2026 earnings.
The London Company Large Cap Strategy stated the following regarding Cisco Systems, Inc. (NASDAQ:CSCO) in its Q3 2024 investor letter:
“Exited: Cisco Systems, Inc. (NASDAQ:CSCO) – Sale reflects slowing growth prospects and risk of value-destroying M&A. Valuation of the shares is attractive, and CSCO offers a 3.3% dividend yield at the current price, which makes it a more attractive holding for our Income Equity portfolio.”
Overall, CSCO ranks 6th on our list of Jim Cramer’s latest stock picks you shouldn’t miss. While we acknowledge the potential of CSCO, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CSCO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
