The Cisco Systems, Inc. (NASDAQ:CSCO) pros and cons were tackled by Pete Najarian and Stephanie Link in a recent discussion on CNBC.
The comments come from the Fast Money: Halftime Report traders as Cisco Systems, Inc. (NASDAQ:CSCO) after Pacific Crest yesterday downgraded the stock from an “Outperform” rating to a “Sector Perform” rating – widely regarded as the equivalent of a “Hold” rating.
According to Najarian, Cisco Systems, Inc. (NASDAQ:CSCO) is a stock that he likes and has been liking for a long time.
“I liked it long ago. I continue to like it. Why I have owned it for a long time is the fact that they have solid cash flows. That is one of the reasons. But then when look at valuations – this is right up your alley – they are actually lower than the S&P. When you look at the forward estimations, those are also lower that the forward estimations of the S&P. But what really grabs me is the fact that they have been a share shrinker. They have been shareholder friendly. They have a dividend yield that is 3%. Since they implemented the dividend, all they have done is skyrocket to the upside, giving people money back and the fact that they continue to share shrink. They have actually averaged about 90 million shares per year that they are retiring so for a lot of those reasons, [I like this stock].”
Furthermore, Najarian said that once you look at the next cycles for Cisco Systems, Inc. (NASDAQ:CSCO), one will see that the company is focused on the cloud and the big data centers. Najarian then added that he thinks Cisco Systems, Inc. (NASDAQ:CSCO) has room and will move to the upside.
Watch the video below where Stephanie Link explained why she does not like the stock and is taking the position of a bear on the stock.