Is Cisco’s Stock A Good Buy Right Now?

With shares of Cisco (NASDAQ:CSCO) trading at around $19.01, is CSCO a Buy, a Wait and See, or a Stay Away? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

C = Catalyst for the Stock’s Movement

Despite beating earnings seven straight quarters in a row, Cisco’s stock hasn’t gained any ground over the past year. A lot of investors don’t like to put money into “Old Tech” companies. This title is unfair considering “Old Tech” companies are still young. Companies like Cisco that survived the .com bubble are extremely strong when it comes to fundamentals. Cisco, like many of its counterparts who survived that era, will be around for decades, if not longer.

It might be difficult to see growth here, but with an enormous amount of cash available ($45 billion), Cisco is going to have many opportunities to increase growth. Cisco is also using their large cash position to pay a 3% yield.

E = Debt to Equity Ratio is Low

Cisco has a debt-to-equity ratio of .31, which is low. As mentioned above, Cisco has $45 billion in cash. Long-term debt is $16.27 billion. Operating cash flow is close to $12 billion.

T = Technicals on the Stock Chart Are Unimpressive

While Cisco has outperformed the S&P 500 for the past month, it has underperformed the S&P 500 over the past three years.

Over the past month…