Retirement Stock Portfolio: 12 Safe Tech Stocks To Consider

4. Cisco Systems, Inc. (NASDAQ:CSCO)

Beta Value: 0.82

Dividend Yield: 2.95%

Number of Hedge Fund Holders: 61

Cisco Systems, Inc. (NASDAQ:CSCO) is a leading American digital communications technology company that provides a wide array of services. Earlier this year, the company launched a $1 billion fund to invest in artificial intelligence (AI) startups, with notable investments in Cohere, Mistral AI, and Scale AI. Additionally, Cisco Systems, Inc. (NASDAQ:CSCO) has a strong presence in the cybersecurity sector, offering products such as threat management, AI-powered security assistants, firewalls, and cloud security solutions.

Cisco Systems, Inc. (NASDAQ:CSCO) reported strong financial results for Q4 and the fiscal year 2024. The company achieved Q4 revenue of $13.6 billion, exceeding its guidance, and total revenue for the fiscal year reached $53.8 billion. Cisco also reported a notable 20-year high gross margin of 67.5%. For the first quarter of fiscal year 2025, Cisco Systems, Inc. (NASDAQ:CSCO) projects revenue between $13.65 billion and $13.85 billion, with full-year revenue expectations ranging from $55 billion to $56.2 billion.

Analysts are positive about CSCO and its potential. Earlier this August, HSBC upgraded Cisco Systems, Inc. (NASDAQ:CSCO) to a Buy rating and raised its target price to $58 from $46. The upgrade was based on Cisco’s “politically tactful” guidance for FY25, with a conservative outlook despite Q4 results meeting estimates. HSBC anticipates Cisco’s non-GAAP EPS will grow at a CAGR of 11.6% from 2024 to 2027, with double-digit growth expected in networking revenue for most of FY25. New Street Research also upgraded Cisco Systems, Inc. (NASDAQ:CSCO) to Buy, setting a target price of $57. The firm highlighted a significant rebound in core revenues and order flows, with a 30% sequential increase in orders—the highest quarterly growth in two decades.

As of the second quarter, 61 hedge funds held stakes in Cisco Systems, Inc. (NASDAQ:CSCO), totaling $1.6 billion. Harris Associates was the largest shareholder, owning 10.4 million shares valued at $496.4 million as of June 30.