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Is Cisco Systems a Buy?


Shares of Cisco Systems (NASDAQ: CSCO) have nearly doubled over the last five years. It managed this with help from efforts to couple its hardware with a subscription component and expansion of its software and services. This has allowed Cisco to position itself for the next big trends in networking and internet communication.

More recently, the stock has pulled back a bit following its fourth-quarter earnings report and guidance published in August. The networking giant is now trading in the range of 14.5 times this year's expected earnings -- a level that looks cheap versus where it's been in recent years. 

CSCO PE Ratio (Forward) Chart

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Source Fool.com

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