Cisco Sets Itself Up for Success
Many investors have jumped ship on Cisco (NASDAQ: CSCO) recently, partly over concerns about macroeconomic uncertainty fueled by the trade war with China. This stock is down about 20% from its 52-week high of $58.26. This is a buying opportunity.
Cisco is one of the largest players in the game when it comes to networking and telecommunications equipment. Its name can be found branded on physical products you would see every day, like phones and modems, but it is also responsible for behind-the-scenes products you wouldn't see, like network switches and other hardware for data centers. It is this diversification that gives Cisco a strong competitive advantage for the long run, not having to rely solely on one iron in the fire like many of its competitors.
Over the last year, Cisco has continued to build out and strengthen its offerings. In July, Cisco announced its intent to purchase for $2.6 billion Acacia Communications, whose optical portfolio will aim to reinforce Cisco's current networking solutions. This is an important move in light of the imminent change to 5G.
Source Fool.com
