Published On: Sat, Jun 6th, 2015

Stock analysis: Cisco soars above its peers with a score of 9

Cisco Systems' StockReports+ score has risen to 9 from 5 over the past 9 weeks (Albert Gea/REUTERS)

StockReports+ is a Thomson Reuters service that helps investors pick equities by simplifying the process of evaluating stocks, finding new trading ideas, and understanding trends affecting markets and industries. Globe Unlimited subscribers get unlimited access to these reports from about 7,000 companies, which normally retail for $25 each.

Cisco Systems Inc. (CSCO-Q) gets a score of 9 from StockReports+, and it’s jumped to a 9 rating from a 5 rating over the past nine weeks. “The recent change in the Average Score was due to an improvement in more than three of the underlying component scores, StockReports+ says.

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Earnings— Rating: 10 — The outlook for Cisco’s earnings is positive, and a 10 rating is significantly more bullish than the Communications & Networking Industry average of 5.6. Its latest earnings surprised on the upside.

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Fundamental — Rating: 7 — The outlook for Fundamentals is neutral and in-line with the market. Cisco’s Fundamental Rating declined significantly over the last quarter from 9 to 7. But its current rating is still more bullish than its industry average of 4.9. Of the 72 firms in the Communications & Networking Industry, Cisco is among the 25 companies that pay a dividend. It’s current yield is 2.9 per cent.

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Relative Valuation— Rating: 8 — The outlook is positive. Compared to the Communications & Networking Industry, Cisco is currently trading at a significant discount based on its trailing price-to-earnings ratio, forward P/E and forward P/E growth. Cisco’s trailing P/E of 16.7 represents a 13-per-cent premium to its five-year average of 14.9.

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Risk — Rating: 10 — The stock’s risk outlook is positive, meaning it has consistent return patterns and low volatility. The stock tends to move in-line with the S&P 500 composite index and over the past 90 days its stock price has been less volatile than the overall market.

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Price momentum— Rating: 7 — The outlook is neutral, and it’s perfomance is in-line with the market. As of the close of June 4, Cisco shares are currently trading 5.6 per cent below its 52-week high and 27.2 per cent above its 52-week low. They’re 0.1 per cent below their 50-day moving average of $28.64 (U.S.) and 5.3 per cent above their 200-day moving average of $27.18.

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Insider Trading — Rating: 1 — The outlook is negative. The rating of 1 is significantly more bearish than the Communications & Networking Industry average of 4.4. Since the beginning of the current quarter, sales by Cisco executives have totalled $5.92-million (U.S.). Over the past five years, the average sell total for second quarter has been $28.97-million.

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StockReports+ gives each stock an average score that combines the quantitative analysis of six widely-used investment decision-making tools: earnings, fundamentals, relative valuation, risk, price momentum and insider trading. The average score for Cisco is 9 out of 10. The current score places it within the top 15 per cent of stocks scored by StockReports+.

[“source – theglobeandmail.com”]