Stock Research Report for CSCO as of 2/29/12 - Chaikin Power Tools

Page 1

Cisco Systems (CSCO)

Price: $20.21

Industry: Computer-Office Equipment Chaikin Power Gauge Report | Generated: Wed Feb 29 11:40 EST 2012 Power Gauge Rating

CSCO - Bullish TM

The Chaikin Power Gauge Rating for CSCO is bullish due to very bullish price/volume activity and positive expert opinions. Price and volume activity for CSCO is very bullish which is indicated by its price strength versus the market and a positive Chaikin price trend.

News Sentiment Rating

Bearish CSCO Cisco Systems

February 29, 2012

TM

Chaikin Sentiment Gauge for CSCO is bearish. There is currently a significant negative sentiment within news stories concerning CSCO.

News Sentiment :Negative

Power Trend - 5 Year Chart

The Power Gauge distills a 20 factor model into a concise picture of a stock's potential.

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High Potential

Neutral

Low Potential

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Financials & Earnings

Financial Metrics Rating

Financial Metrics

Neutral

LT Debt/Equity Ratio

CSCO's financial metrics are neutral. The company yields a high return on shareholder's equity and is carrying too much long term debt relative to its industry group.

Price to Book Value

Return on Equity

The rank is based on a high long term debt to equity ratio relative to its industry group, high return on equity, high price to sales ratio and relatively high cash flow.

Price to Sales Ratio

Business Value

Assets and Liabilities

Valuation

Returns

Ratio

TTM

Ratio

TTM

Ratio

Current Ratio

3.37

Price/Book

2.20

Return on Invest

13.0%

LT Debt/Equity

0.34

Price/Sales

2.51

Return on Equity

17.4%

Earnings Performance

TTM

Earnings Performance Rating

Neutral

Earnings Growth

CSCO's earnings performance has been neutral. The company is priced relatively low compared to next year's projected EPS and has a history of weak earnings growth.

Earnings Surprise

Earnings Trend

The rank is based on poor EPS growth over the past 3-5 years, better than expected earnings in recent quarters, a relatively poor trend in earnings this year, a relatively low projected P/E ratio and consistent earnings over the past 5 years.

Projected P/E Ratio

Earnings Consistency

5 Year Revenue and Earnings Growth

Revenue(M) Rev % Growth EPS EPS % Growth

EPS Estimates

07/07

07/08

07/09

07/10

07/11

34,900.00

39,450.00

36,117.00

40,040.00

43,218.00

22.52%

13.04%

-8.45%

10.86%

7.94%

$1.17

$1.35

$1.05

$1.36

$1.17

28.57%

15.38%

-22.22%

29.52%

-13.97%

EPS Surprise

Factor

Actual EPS Prev

EST EPS Current

Change

$0.33

$0.41

+0.08

Quarterly EPS Yearly EPS Factor

$1.17

$1.63

+0.46

Actual EPS Growth

Est EPS Growth

Change

9.18%

8.40%

-0.78

3-5 year EPS

EPS Quarterly Results Estimate

Actual

Difference

% Difference

FY

Qtr 1

Qtr 2

Qtr 3

Qtr 4

Total

Latest Qtr

$0.38

$0.43

$0.05

1 Qtr Ago

$0.34

$0.38

$0.04

13.16

07/10

$0.31

$0.32

$0.38

$0.34

$1.35

11.76

07/11

$0.34

$0.27

$0.33

$0.23

$1.17

2 Qtr Ago

$0.32

$0.35

3 Qtr Ago

$0.32

$0.37

$0.03

9.38

07/12

$0.33

$0.41

-

-

-

$0.05

15.63

Fiscal Year End Month is July.

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Price Trend & Expert Opinions Price/Volume Activity

Price/Volume Activity Rating

Very Bullish

Relative Strength vs Market

Price and volume activity for CSCO is very bullish. CSCO has outperformed the S&P 500 over 26 weeks and has a rising price trend.

Chaikin Money Flow

Price Trend

The rank for CSCO is based on its price strength versus the market, positive Chaikin money flow, a positive Chaikin price trend and a negative Chaikin price trend ROC.

Price Trend ROC

Volume Trend

Relative Strength vs S&P500 Index

Chaikin Money Flow

Chart shows whether CSCO is performing better or worse than the market.

Chaikin Money Flow analyzes supply and demand for a company's stock.

Price Activity

Price Activity

Factor

Value

Factor

52 Week High

20.43

52 Week Low

13.73

% Change YTD Rel S&P 500

2.57%

Expert Opinions

Volume Activity Value

Factor

Value

% Change Price - 4 Weeks

2.83%

Average Volume 20 Days

48,113,996

% Change Price - 24 Weeks

23.55%

Average Volume 90 Days

47,447,397

% Change Price - 4 Wks Rel to S&P

-1.65%

Chaikin Money Flow Persistency

% Change Price - 24 Wks Rel to S&P

5.60%

72%

Expert Opinions

Bullish

Earnings Estimate Revisions

Expert opinions about CSCO are positive. Shorting of CSCO is low and analysts's opinions on CSCO have been more positive recently.

Short Interest

Insider Activity

The rank for CSCO is based on analysts revising earnings estimates upward, a low short interest ratio, insiders not purchasing significant amounts of stock and optimistic analyst opinions.

Analyst Opinions

Relative Strength vs Industry

Earnings Estimate Revisions Current Current Qtr Next Qtr

0.41 0.43 Current

Current FY

1.63

Analyst Recommendations

7 Days Ago % Change 0.41 0.43

0.00% 0.00%

30 Days Ago % Change 1.57

0.06

Factor Mean this Week Mean Last Week Change Mean 5 Weeks Ago

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EPS Estimates Revision Summary Value

Last Week Down

Up

Down

Curr Qtr

0

0

9

0

Curr Yr

0

0

11

0

Next Qtr

1

0

9

2

Next Yr

1

0

10

0

Buy Buy -0.07

Last 4 Weeks

Up

Buy

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The Company & Its Competitors

News Headlines for CSCO

CSCO's Competitors in Computer-Office Equipment Historic EPS growth

Projected EPS growth

Profit Margin

PEG

PE

Revenue(M)

Cisco buys optical company for $271 million Feb 25, 2012

CSCO

9.18%

8.40%

15.60%

1.48

13.20

43,218

NTGR

16.74%

15.50%

7.74%

0.97

15.64

1,181

Cisco Announces Intent to Acquire Lightwire Feb 24, 2012

QLGC

4.41%

11.00%

20.51%

1.46

14.27

597

ELX

3.39%

10.67%

-5.49%

2.08

30.86

453

TIBX

12.61%

14.00%

12.22%

2.20

35.57

920

TNS

17.12%

11.33%

0.07%

0.75

10.90

-

BRCD

25.26%

9.40%

3.87%

1.48

17.24

2,147

RVBD

58.59%

22.19%

8.78%

2.14

61.54

726

Company

Power Gauge

Cisco challenges Microsoft takeover of Skype in EU - Feb 15, 2012 Summary Box: Cisco challenges MicrosoftSkype - Feb 15, 2012 Cisco challenges Microsoft, Skype merger in EU - Feb 15, 2012

Company Details

Company Profile

Cisco Systems 170 WEST TASMAN DR SAN JOSE, CA 95134-1706 USA Phone: 4085264000 Fax: 408-526-4100 Website: http://http://www.cisco.com/ Full Time Employees: 71,825 Sector: Computer and Technology

Cisco Systems, Inc. is the worldwide leader in networking for the Internet. Cisco's Internet Protocol-based networking solutions are the foundation of the Internet and most corporate, education, and government networks around the world. Cisco provides the broadest line of solutions for transporting data, voice and video within buildings, across campuses, or around the world.

Power Gauge Ratings are created using a relative ranking system that assigns a rank of 0 to 100 (100 being the highest) to each stock in the universe. Rank is calculated by evaluating each of the stocks factors and combining them into a single number using a weighting formula. A stock's rank ranges from 100-0, where 100 is the strongest, and a rank of 95 indicates the stock is better than 95% of the stocks in the universe. Chaikin Stock Research(CSR) is not registered as a securities broker dealer or investment advisor with either the U.S. Securities and Exchange Commission or with any state securities regulatory authority. CSR is not responsible for trades executed by users of this research report, our web site or mobile app based on the information included herein. The information presented in this report does not represent a recommendation to buy or sell stocks or any financial instrument nor is it intended as an endorsement of any security or investment. The information in this report is generic by nature and is not personalized to the specific financial situation of any individual. The user bears complete responsibility for their own investment research and should seek the advice of a qualified investment professional before making any investment decisions. Copyright (c) 1978-(Present) by ZACKS Investment Research, Inc ("ZACKS"). The information, data, analyses and opinions contained herein (1) includes the confidential and proprietary information of ZACKS, (2) may not be copied or redistributed, for any purpose, (3) does not constitute investment advice offered by ZACKS, (4) are provided solely for informational purposes, and (5) are not warranted or represented to be correct, complete, accurate or timely. ZACKS shall not be responsible for investment decisions, damages or other losses resulting from, or related to, use of this information, data, analyses or opinions. Past performance is no guarantee of future performance. ZACKS is not affiliated with Chaikin Power Tools. This report from Chaikin Power Tools is for informational purposes only and is not a recommendation to buy or sell securities.

LM 2.3 DS 3.0 LS 2.1

Data Provided by ZACKS Investment Research, Inc., www.zacks.com

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