Cisco Systems, Inc. (NASDAQ:CSCO) has offered some of the most reliable returns in 2016, rising 12.91% year-to-date. In short, Cisco has strong intrinsic qualities. Its valuation appears attractive and its financial situation and profitability offer assurances for investors considering Cisco stock. A majority of analysts have listed it as a “Buy.”
Technically, Cisco stock has crossed above the $29.90 level, setting a new record high. Cisco looks ready to break the $29.00-per-share barrier. There might be a pullback as a result of profit-taking in the next few days, but Cisco stock can rely on a solid story to back it up. Indeed, it should not be long before Cisco stock hits another high—this time in the $30.00-per-share range.
Can CSCO Stock Hit New Highs?
Why do I have this confidence in Cisco stock? Cisco will be one of the major players in transitioning engineers, developers, and customers to the next generation of computer networks. Cisco is also working on the full integration of security and networking with new technologies designed to simplify protection in corporate subsidiaries. In plain English, Cisco will make digital technology safer.
“DNA” is a new approach to networking designed for the digital age. Since customers have adopted mobile technologies, the cloud, analytics, and the Internet of Things (IoT), IT teams are struggling to keep pace with the ever-increasing complexity of networks. For this reason, users are more vulnerable to sophisticated cyber attacks. Therefore, Cisco has designed a new network to improve the adaptability of traditional networks to increased security requirements. Cisco DNA has shifted network technology from hardware-centric to software-driven.
From the network to the endpoint to the cloud, the Cisco architectural approach is able to detect a greater number of threats from cybercriminals. Now, it can help customers to remedy threats and risks in less than 17 hours—much faster than the industry standard of 100 days. (Source: “Cisco Closes ‘Security Effectiveness Gap’ with New Services and Integrated Cloud-Based Solutions,” The Network, July 11, 2016.)
To understand how much DNA can promote the demand for Cisco technologies, boosting revenue, just remember the last time you had to deal with a computer virus. There are few aspects of modern technology as frustrating as trying to deal with cyber threats.
This is why it’s such an exciting time for Cisco stock. The incentive for companies to invest in Cisco’s new integrated system is simple. If it makes sense, it will sell.
If you’re reading this, you’re using a computer or mobile device. As the likely owner of that device, you are probably aware of the many different security products available to address different aspects of cybersecurity. This makes it complicated to manage your risk and ends up leaving you more vulnerable to a potential attack or virus. Cisco simply offers the simplest and, therefore, most effective security. That’s why Cisco stock is worth looking at.
The Bottom Line on CSCO Stock
If that fails to excite, Cisco is one of the few technology companies that actually pay that elusive dividend. (Indeed, tech companies offering dividends aren’t common.) Cisco has been paying its shareholders a dividend for five years now. Currently, Cisco’s dividend has a 3.5% yield and the dividend won’t suffer a cut anytime soon.