We recently compiled a list of the 10 Mega-Cap Stocks That Could Continue Surging Post 52-Week Highs. In this article, we are going to take a look at where Cisco Systems Inc. (NASDAQ:CSCO) stands against the other mega-cap stocks.
The US stock markets have gone up leading up to the day of President Donald Trump’s inauguration. All the major indices are set to continue their optimism from last week, when the Dow, the S&P, and the Nasdaq all reported gains of over 3.7%.
Even though the S&P had hardly moved from its early November levels when the election happened, many mega-cap stocks continue to register 52-week highs. We looked at some of these stocks and why they are expected to continue surging up with the earnings season already underway.
To come up with our list of 10 mega-cap stocks that could continue surging post 52-week highs, we only considered stocks that have recently hit their 52-week highs and have a market cap of at least $150 billion.
Engineers using the latest Cisco TelePresence technology to collaborate with colleagues around the world.
Cisco Systems Inc. (NASDAQ:CSCO)
Cisco Systems Inc. is a multinational company that manufactures, sells, and designs internet protocol-based networking and other telecom equipment. CSCO’s last year performance was only slightly below the S&P 500’s, which is quite staggering considering the stock was down 10% in the first 8 months of the year.
The company’s resurgence has brought investors and analysts back into the stock, with Citi recently adding it to its 30-day Catalyst Watch list. The company announces its fiscal Q2 results on the 12th of February, so one can expect upward momentum till that point.
CSCO is now in a strong position for growth and profitability. The company appears to be making good progress heading into the latter half of the fiscal year. The Cloud/AI and Security Segments are expected to register growth in the second half of the year. The ongoing quarter is also expected to beat analyst estimates according to the management, with revenue coming in at $13.85 billion. In the longer run, even though revenue could stay steady, operating EPS is expected to accelerate through 2027.
Overall CSCO ranks 3rd on our list of the mega-cap stocks that could continue surging post 52-week highs. While we acknowledge the potential of CSCO as an investment, our conviction lies in the belief that some 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 as promising as 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 was originally published at Insider Monkey.
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