Why Cisco Systems is Overdue for a Rebound
Finding value in a bull market can be a challenge, particularly finding a cheap stock with a strong balance sheet and a record of consistent earnings and dividend growth. And yet, an investor needs to look no further than Cisco Systems (NASDAQ: CSCO), a manufacturer of networking systems and one of the largest technology companies in the world. Cisco's stock has come under pressure for the same factors which are likely to drive it higher over the near term. Value, in this case, could be very fleeting.
Let's first review Cisco's business. Cisco is the world's largest hardware and software supplier within the networking solutions sector and divides its business into four segments:
The company's business is global, with 40% generated outside the Americas region. Given its leadership in critical internet and cloud components as well as its international exposure, it is no surprise then that Cisco's business is very dependent upon global IT spending.
Source Fool.com
