Should You Chase Cisco’s Post-Earnings Rally?
Cisco's (NASDAQ: CSCO) stock recently rallied after the networking giant posted its third-quarter numbers. Will its high yield and low valuation make Cisco a safe-haven stock for a turbulent market? Let's dig deeper to see whether investors should chase its post-earnings rally.
Cisco's Q3 revenue fell 8% annually to $12 billion, but beat estimates by $130 million. Its adjusted EPS rose 1% to $0.79, topping expectations by $0.08.
Cisco's growth was tepid, but the trade war and COVID-19 crisis had significantly lowered investors' expectations. Its stock remains down about 15% over the past 12 months, but it pays a forward dividend yield of roughly 3.3% and trades around 13 times forward earnings.
Source Fool.com
