On the surface, the news doesn’t look all that good for Cisco Systems, Inc. (NASDAQ:CSCO) following their most recent earnings report. Though their revenue of $2.25 billion for the quarter ending July 26 beat estimates, it was still another slight decline in earnings from a year ago for the Silicon Valley hardware giant. Hot on the heels of the earnings report, Cisco Systems, Inc. (NASDAQ:CSCO) further announced that they would be slashing 6,000 jobs from their global workforce, which accounted for about 8% of it.

Cisco Systems, Inc. (NASDAQ:CSCO)

Despite the rather dire sounding news, Strategic Analysis Chairman Ross Healy believes Cisco Systems, Inc. (NASDAQ:CSCO) has in fact turned the corner; or is in the process of turning it at the very least. Speaking on CNBC this morning, Healy discussed the positives he sees in Cisco Systems, Inc. (NASDAQ:CSCO)’s operations and stock.

“When you’re looking to make money in this market, what you want to do is find a company with a strong balance sheet, strong cash flows, you like a cheap valuation, a little bit of dividend, of course, if you can get it, and then what you have to look for; because when these kinds of stocks have basically gone for this entire bull market and not really done very much, you’re looking for stocks that are starting to make a turn in their business,” Healy said.

Healy mentioned some of the areas of growth as cited during yesterday’s conference call with Cisco Systems, Inc. (NASDAQ:CSCO)’s CEO John Chambers as reasons for optimism in the company’s turnaround, as they are areas he is bullish on, including cloud computing. Healy also revealed that he believes Cisco’s stock to be greatly undervalued at its current rate of $25.20.

“I think quite clearly if everything was clicking on all cylinders for Cisco, the stock would be closer to $40.00 than it is to the $24.00 or so that it’s trading at today,” he added.

He later added that he believes $40.00 is fair market value for the stock based on their earnings, but that within a year even that may seem conservative.

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