Investing in Cisco
However, before buying Cisco shares, it is important to know all the information about this company, its advantages, disadvantages and the detailed analysis of its shares. These are data that we will show you below so that you can make sure if it is really convenient for you to invest in Cisco shares.
What is Cisco?
Cisco System is one of the largest technology companies. It was founded in 1984 in San Francisco, California, United States. Since its beginnings, this company has been dedicated to the manufacture and marketing of telecommunications products.
In addition, maintenance of its own equipment, consulting and training courses in different areas of computer networks. These programs are taught in prestigious academic institutes that maintain partnerships with the company in approximately 128 countries.
Among its wide range of products, it offers: routers, hubs, switches, firewalls, VPN concentrators, software, Callmanager, among others. As we can see, Cisco is divided into two groups: manufacturing and sales of hardware and software products for networks, which account for 30% of revenue, and consulting, training or network implementation, which account for 23% of revenue.
The company has reached major markets in the United States, Canada, Europe, Asia Pacific and the Middle East. Also, over the last 10 years Cisco Systems has established partnerships with Selesforce, Apple, Ericsson, Valeo, Iliad and, this 2020 acquires BabbleLabs.
Cisco entered the Nasdaq market in 2009. It also entered the Dow Jones index and the NYSE, all under the acronym CSCO.
Why buy Cisco stock?
Cisco within the stock market, is considered a mature company in technology, with a track record and high level of expertise second to none. As time passes, the company has had ups and downs, which influences Cisco’s stock.
It was until the last quarter of 2017, when Cisco’s stock value rose by 70%. This percentage was maintained until the month of July 2019. By 2020 it has had a slight imbalance in the economy due to the pandemic. Its fiscal close for the year totaled $49.3 billion, down 5% from the previous year.
By August of this year, each Cisco stock decreased by 11.19% which is equivalent to $5.38. However, its earnings per Cisco stock price is $2.64. Investors consider this company as one of the most attractive in the technology sector to acquire its shares.
Buying Cisco shares: Advantages
- Cisco stock earnings higher than expected. Despite the coronavirus crisis, each Cisco stock generated a quarterly profit of 80 cents, and revenues were $12.15 billion.
- 5G networks. Cisco is working on 5G networks, improving its equipment and innovating most of its technological processes.
- Company with history. Cisco is one of the most important technology companies in the world for being one of the first to offer solutions in computer networks. Its popularity and recognition as a stable company, make the price of Cisco shares increase its value or keep it stable.
Buying Cisco Shares: Disadvantages
- Slow growth. After skyrocketing its stock in 2017, Cisco’s share price increase has been quite slow, leaving minimal earnings per share.
- It is not feasible for short-term investments. The value of Cisco’s stock may be attractive to invest in, but because of its slow growth, the real gains are likely to be over the long term.
How to buy Cisco shares
Do you want to know how to invest in Cisco? The truth is that there are several alternatives such as CDF and trading, but without a doubt, the most reliable and secure way is through brokers.
A broker is a website where you buy and sell your shares without being affected by the regulations of financial entities or the state. The most recommended for these operations are:
This time, we’ll show you how to buy Cisco through eToro:
- Create an eToro account and verify it.
- Log in and deposit the amount you wish to invest in shares.
- Look for Cisco.
- You will then be presented with a box where you can see how much a Cisco stock is worth in real time, uptrends and downtrends and more stock data that may be of interest to you.
- Once you have read this information, click on “buy”.
- Indicate the number of shares, the price of your preference and the duration of the order. Then click on “Invest”.
- Wait a few minutes until the operation is confirmed. That’s it, you can now enjoy your Cisco shares.
Tips for investing in Cisco stock
- Keep in mind that investment businesses such as the stock market tend to have a high level of risk of loss, so make sure that the capital you are going to use to buy Cisco shares does not affect your financial stability.
- Analyze all Cisco company information from its background to the present. It verifies in detail its latest revenues, corroborates its earnings and visualizes its movements in the stock market.
- In case you decide to buy a Cisco share, take advantage of its low price to acquire them.
- Get advice from the most knowledgeable experts in the stock market and the stock market so that you can answer your questions about investing in Cisco in the future.
- Take guidance from other shareholders who have already opted for Cisco, and see how their experience with the company’s stock has been.