During 2018 and 2019, Cisco’s performance is quite impressive. Cisco is one of the largest global manufacturers and providers of internet routers. As expected, the company is the best-performing Dow stock of 2019. However, that’s not all, as analysts predict that this is only the beginning of the company’s growth in 2019, as well as the years to come.
During the beginning of 2019, Cisco reported amazing results when it comes to the share. To be precise, their shares are up 27.42% year-to-date to $55.21. Also, the Dow is higher by 13.28 percent, up to 26,424.99. In the first quarter of 2019, Cisco performed better than every company in this industry.
Will Cisco Continue to Surge?
Yes, it will. Usually, when the revenue and earnings enjoy the increase, the market share also increases. This is the case with Cisco. Their earnings and revenue are all-time-best, which implicates a huge potential for further growth. Erin Gibbs from S&P Global said that the company is simply growing too fast. The profits are expected to jump to an amazing 18 percent during 2019, marking a crucial period in the company’s history. Furthermore, analysts expect a steady, healthy cash flow, thanks to the 6 percent dividend yield.
Fundamentally, Cisco is a really strong company. With their newest addition of super-fast 5G wireless around the world, Cisco is definitely going to do some damage at the market. Just remember that 5G is about 20 to 50 times faster than standard 4G networks!
Recent Period Revenue
During the second quarter of 2019, Cisco saw a huge revenue increase of 7% to $12.2 billion. Despite losing $8.8 billion in the year ago, in 2019, the net profit is $2.8 billion. The company announced that they are now giving more money back to shareholders, a quarterly dividend of $0.35 per common share. The authorization of the stock repurchase program is now approved and the budget for that is increased by $15 million.