Connect with us

Entrepreneurship

The Best Tech Stock to Buy on Wall Street Right Now

Published

on

Tech giant Cisco Systems (CSCO) beat Wall Street’s top- and bottom-line estimates in the first quarter. Moreover, the company has increased its full-year 2023 guidance. Despite the challenging macroeconomic environment, CSCO has gained 10.1% over the past six months, and Wall Street analysts see another 17% upside in the stock. Hence, this tech stock could be an ideal investment now. Keep reading….


shutterstock.com – StockNews

Cisco Systems, Inc. (CSCO) reported better-than-expected fiscal 2023 first-quarter results. The company surpassed Wall Street’s top and bottom-line estimates. CSCO’s revenue of $13.60 billion increased 6% year-over-year and was ahead of Wall Street’s estimate of $13.30 billion. Also, its non-GAAP EPS was $0.86, up 5% year-over-year, beating the consensus estimate of $0.84.

“Our fiscal 2023 is off to a good start as we delivered the largest quarterly revenue and second highest quarterly non-GAAP earnings per share in our history. These results demonstrate the relevance of our strategy, our differentiated innovation, and our unique position to help our customers become more resilient,” said Chuck Robbins, CSCO’s chair and CEO.

CSCO’s annualized recurring revenue (ARR) increased 7% year-over-year to $23.20 billion, while its product ARR grew 12% year-over-year. Its remaining performance obligations (RPO) rose 3% from the year-ago value to $30.90 billion, with product RPO growing 5%. This, coupled with the company’s significant backlog and easing supply chain constraints, provides great visibility and supports its raised full-year guidance.

For the fiscal year 2023, the company increased its guidance for revenue growth from the previously expected range of 4%-6% to 4.5%-6.5% year-over-year. CSCO has also raised its non-GAAP EPS guidance by 4.5%-6.5% year-over-year to $3.51-$3.58. For the second quarter, the company expects its revenue to grow between 4.5% and 6.5% year-over-year and its non-GAAP EPS to arrive between $0.84 and $0.86.

The company has raised its dividends for 11 consecutive years. It pays a $1.52 per share dividend annually, which translates to an attractive 3.16% yield on the current share price. Its four-year dividend yield is 2.98%. The company’s dividend payouts have grown at CAGRs of 2.8% and 5.6% over the past three and five years, respectively.

Tech stocks witnessed a massive sell-off in 2022 amid rising interest rates and an economic slowdown, causing the tech-heavy Nasdaq Composite to decline more than 23% over the past year. Despite an uncertain macroeconomic environment, shares of CSCO have gained 10.1% over the past six months.

Furthermore, Wall Street analysts expect the stock to hit $54.70 in the near term, indicating a potential upside of 16.6%.

Here’s what could influence CSCO’s performance in the upcoming months:

Positive Recent Developments

On November 30, 2022, Cisco AppDynamics launched new AppDynamics Cloud capabilities that will allow organizations to achieve observability over cloud-native applications correlated with business context across the entire IT estate. The new capabilities will initially support cloud-native applications and digital services on Amazon Web Services (AWS)

On October 12, CSCO and software giant Microsoft Corporation (MSFT) announced their partnership where CSCO and MSFT Teams will be able to run natively on CSCO Room and Desk devices, and CSCO will be a partner in the Certified for MSFT Teams program in the first half of 2023. Through this partnership, CSCO is helping drive interoperability and is meeting its customers’ needs.

Robust Financials

CSCO’s total revenue increased 5.7% year-over-year to $13.63 billion for the fiscal 2023 first quarter ended October 29, 2022. The company’s product revenue rose 7.5% from the year-ago value to $10.25 billion. Its gross margin was $8.35 billion, up 3.6% year-over-year. Its non-GAAP operating income grew 1.1% year-over-year to $4.33 billion.

Furthermore, the company’s non-GAAP net income increased 2.1% year-over-year to $3.55 billion, and its non-GAAP EPS came in at $0.86, up 4.9% year-over-year.

Favorable Analyst Estimates

Analysts expect CSCO’s revenue for the fiscal year (ending June 2023) to come in at $54.50 billion, indicating an increase of 5.7% year-over-year. The consensus EPS estimate of $3.55 for the ongoing year indicates a 5.6% year-over-year increase. Moreover, the company has an impressive earnings surprise history since it surpassed the consensus EPS estimates in each of the trailing four quarters.

Also, the company’s revenue and EPS for the next fiscal year are expected to grow 4.1% and 8.1% from the previous year to $56.71 billion and $3.84, respectively.

High Profitability

In terms of the trailing-12-month gross profit margin, CSCO’s 62.23% is 25.7% higher than the 49.53% industry average. And its 30.34% trailing-12-month EBITDA margin is 162.1% higher than the industry average of 11.58%. Likewise, the stock’s 22.00% trailing-12-month net income margin is 582.7% higher than the industry average of 3.22%.

Furthermore, CSCO’s trailing-12-month ROCE, ROTC, and ROTA of 27.72%, 17.02%, and 12.36% compare to the industry averages of 4.75%, 3.21%, and 1.52%, respectively.

POWR Ratings Show Promise

CSCO has an overall rating of A, equating to a Strong Buy in our POWR Ratings system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.

Our proprietary rating system also evaluates each stock based on eight distinct categories. CSCO has an A grade for Quality, consistent with its high profitability metrics. In addition, the stock has a B grade for Stability. Its 0.82 beta justifies its Stability grade.

CSCO is ranked #4 out of 48 stocks in the B-rated Technology – Communication/Networking industry. Click here to access CSCO’s Growth, Value, Momentum, and Sentiment ratings.

Bottom Line

CSCO surpassed Wall Street’s revenue and earnings estimates in the first quarter. Moreover, the company has raised its full-year 2023 guidance on the back of its significant backlog, strong ARR and RPO, and easing supply situation. The company is well-positioned to benefit from trends toward hybrid work and cloud environments.

Given CSCO’s robust financials, optimistic analyst estimates, reliable dividend payments, and high profitability, it could be wise to buy this tech stock now.

How Does Cisco Systems, Inc. (CSCO) Stack up Against Its Peers?

CSCO has an overall POWR Rating of A. Check out these other stocks within the Technology – Communication/Networking industry with an A (Strong Buy) rating: Extreme Networks, Inc. (EXTR), AudioCodes Ltd. (AUDC), and PC-Tel, Inc. (PCTI).


CSCO shares fell $0.09 (-0.19%) in premarket trading Thursday. Year-to-date, CSCO has declined -0.77%, versus a 2.37% rise in the benchmark S&P 500 index during the same period.


About the Author: Mangeet Kaur Bouns

Mangeet’s keen interest in the stock market led her to become an investment researcher and financial journalist. Using her fundamental approach to analyzing stocks, Mangeet’s looks to help retail investors understand the underlying factors before making investment decisions.

More…

The post The Best Tech Stock to Buy on Wall Street Right Now appeared first on StockNews.com

Source link

Entrepreneurship

10 Things Every Working Woman Should Do This Year

Published

on

Opinions expressed by Entrepreneur contributors are their own.

Self-care has become an all-encompassing term that has strayed from the importance of everyday commodities that keep us in good health and spirits. Though pampering and “treat yourself” moments still have value, here are ten ways to invest in yourself to produce long-lasting, positive results.

Related: 8 Self-Care Tips From Wildly Successful Entrepreneurs

1. Put money into a 401(k)

It’s never too early (or too late!) to start saving for the future. Depending on your employment status, there are different retirement savings accounts. 401(k)s are the most common since these are employer-sponsored and often come with an employer match. However, freelancers also have options, such as a SEP-IRA or a high-yield savings account, to put away extra, tax-free dollars for retirement.

2. Schedule a health checkup

Self-care first includes taking care of your physical health. It’s easy to discredit regular checkups when you’re feeling healthy, but make this the year to get your blood work done. It creates a baseline for your health to identify areas needing improvement or extra attention.

Also, choose areas in your life where you can make small changes. Improving your health doesn’t always mean a drastic overhaul; it may be as simple as drinking more water or adding an extra 30 minutes of exercise to your day.

Related: 3 Key Tips for Optimizing Your Physical Health as an Entrepreneur

3. Review health insurance benefits

Many people with health insurance aren’t sure exactly what it does and doesn’t cover. If you’re unsure, talk with your HR representative or your health insurance provider to get an overview of deductibles, co-payments and other supplemental benefits you may not be aware of. Then, decide if the health care plan makes sense for your current lifestyle.

Are you paying for benefits you don’t use, or do you need additional benefits that aren’t covered? Selecting the right plan will help ensure you have what you need without paying the extra expense for anything you don’t.

4. Ignite your curiosity

Maintaining healthy cognitive functions through new pursuits gives a boost to the brain. Get curious and find what speaks to you. This can be anything from exploring local museums, embarking on different hiking trails, learning a new language or reading more books.

There’s no limit to what you can do, and these activities can ignite more creativity and motivation in your work. While it may be helpful to look to others for inspiration, make them enjoyable so you’ll want to make them a regular occurrence.

5. Prioritize mental health

Mental health has been at the forefront of people’s lives over the past few years, as many have experienced burnout. We often equate productivity with a value that drives us to go beyond our means and leads to anxiety, stress and depression. Take note of your everyday stressors and see how to reduce or eliminate them. Then, replace them with relaxing outlets that allow you to recharge.

There are various ways to prioritize mental health, from practicing positive self-talk to meditation to scheduling an electronics-free day. You may have to try different solutions before you find one that fits.

Related: 5 Ways to Protect Your Mental Health as an Entrepreneur

6. Implement good sleep habits

Consistent sleep is one of the essential factors of good health but one that is often overlooked. For many, it can be challenging to wind down from the workday. Therefore, you must “train” your body to prepare for sleep by getting into a nighttime routine.

Create a sanctuary for yourself to improve your sleep habits. Enjoy a soothing cup of herbal tea, perform a skincare routine, and snuggle in with a good book rather than scrolling through your phone. Additionally, ensure your bedroom is dark and cool for ideal sleep comfort and turn on soothing sounds if it helps lull you to sleep.

7. Try something new

What have you wanted to try but have always held back? Maybe it’s public speaking or contributing to a blog. Whatever “new” has been on your to-do, make a plan, schedule it on your calendar and go for it. It’s common to hold back from these activities due to fear of the unknown or failure, but trying new things helps create confidence and can be the catalyst you need to push you to the next level.

8. Learn to set boundaries

Boundary setting is crucial to relationships yet can be difficult to master. It doesn’t always involve simply saying no to people’s requests. Instead, it requires protecting your own values when people violate them. Setting boundaries may mean spending less time with certain people, removing yourself from toxic situations, or declining invites to events that don’t improve your life. Explore areas where boundaries will help you grow, and keep in mind growth itself is a work in progress.

Related: How to Set Boundaries to Build Thriving Relationships

9. Spend quality time alone

Learning how to enjoy time spent alone is a valuable gift. We are inundated by a false sense of connection through the internet, which often makes us feel lonelier than ever. Then, we overschedule our calendars to make up for human connections, only to feel drained afterward. Slow it down and plan a few solo dates a month to see how it feels to be truly present with yourself.

For those who aren’t used to spending quality time alone, it can feel awkward and uncomfortable initially, but these stem from your own perceptions. Take in a matinee, sit in a coffee shop and read, or enjoy a concert or event you’ve wanted to attend. Alone time has been linked to improved stress management and greater life satisfaction, so it’s worth trying to give yourself more time.

Related: Turns Out, Those Who Like Being Alone Can Be More Creative

10. Get active

Getting active can take on several directions. It can be physical, emotional or spiritual. The point is to engage with people and pursuits that feed your soul. Whether volunteering within your community, setting yourself an exercise goal, or learning more about personal development, there are endless ways to get active and invest in yourself this year.

window.addEventListener(‘load’, function() {
!function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod?
n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;
n.push=n;n.loaded=!0;n.version=’2.0′;n.queue=[];t=b.createElement(e);t.async=!0;
t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window,
document,’script’,’

fbq(‘init’, ‘1098588566942656’);
fbq(‘set’,’agent’,’tmgoogletagmanager’, ‘1098588566942656’);
fbq(‘track’, “PageView”);
});

Source link

Continue Reading

Entrepreneurship

Are You a Winner? How to Truly Define Winning in Your Business

Published

on

Opinions expressed by Entrepreneur contributors are their own.

Businesses gauge their performance typically with dozens of goals and metrics. But you can’t do everything at once. The challenge is to get people focused on the one thing that’s most important right now. If it moved in the right direction, it would eliminate a weakness (or capitalize on an opportunity) and improve financial outcomes. You improve that, and you win.

However, not every company clearly defines winning. A catalog of goals can pull the organization in multiple directions and stretch finite resources. Numerous goals can inherently be at odds, working against each other and for conflicting purposes. For example, a cost reduction goal might undermine an innovation goal requiring a significant investment.

window.addEventListener(‘load’, function() {
!function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod?
n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;
n.push=n;n.loaded=!0;n.version=’2.0′;n.queue=[];t=b.createElement(e);t.async=!0;
t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window,
document,’script’,’

fbq(‘init’, ‘1098588566942656’);
fbq(‘set’,’agent’,’tmgoogletagmanager’, ‘1098588566942656’);
fbq(‘track’, “PageView”);
});

Source link

Continue Reading

Entrepreneurship

Gen Z Is Making Ugg Boots Fashionable Again: Report

Published

on

Ugg boots, the furry, sheepskin boots that defined the 2000s are back, apparently, with spiking interest and Gen Z cachet, according to data from shopping website, Lyst.

The site’s annual quarterly report that highlights the “hottest” 20 fashion brands was released on Thursday, and, as Insider noted, Ugg is on it for the first time since the index began in 2017.

“Gen Z shoppers are breathing new life into once dormant brands … with over 1.2 billion mentions on TikTok — Ugg’s influence is undeniable,” the report notes.

The boots were also sold out of stores during the holidays, it added.

Generation Z, or people born between 1997 and 2012, has demonstrated a penchant for bringing back old technology and trends, from flip phones to “vintage” headphones with cords.

But Ugg boots go back much further — the word “ugg” is actually a general term in Australia that means boots made from sheepskin and fleece, according to the BBC.

The company that created the “UGG” boot, Deckers Outdoor Corporation, is based in the U.S. and has tried and failed to trademark the word in Australia (where a court decided it was a generic word and thus could not be trademarked), the outlet added.

The company says the boots began to gain popularity in California in the 1980s. They were first featured on Oprah’s Favorite Things in 2000 (a huge brand-maker back then) and became “cherished commodities” early in the decade, according to Vogue.

The boots later gained prominence again with a fashion movement that prioritized “ugly” clothes, and have since become an unironic Gen Z favorite, per Insider. Kylie Jenner was also spotted wearing them in November.

window.addEventListener(‘load’, function() {
!function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod?
n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;
n.push=n;n.loaded=!0;n.version=’2.0′;n.queue=[];t=b.createElement(e);t.async=!0;
t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window,
document,’script’,’

fbq(‘init’, ‘1098588566942656’);
fbq(‘set’,’agent’,’tmgoogletagmanager’, ‘1098588566942656’);
fbq(‘track’, “PageView”);
});

Source link

Continue Reading

Trending

%d bloggers like this: