Software helps cut Cisco’s risk

Article Excerpt

CISCO SYSTEMS INC. $56 is a buy. The maker of computer networking equipment (Nasdaq symbol CSCO; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 4.0 billion; Market cap: $224.0 billion; Price-to-sales ratio: 4.1; Dividend yield: 2.9%; TSINetwork Rating: Average; www.cisco.com) uses third-party manufacturers in many countries to make its products, so it can shift its production to help avoid new tariffs. The company’s increasing focus on cybersecurity software also limits its tariff risk. In its current fiscal year, ending July 31, 2025, Cisco will probably earn $3.57 a share, and the stock trades at just 15.7 times that estimate. The company also raised your quarterly dividend by 2.5% with the April 2025 payment. The new annual rate of $1.64 yields a solid 2.9%. Cisco Systems is a buy. buy…