Interested in investing in Cisco Systems Shares? Before taking the plunge, take a look at our article.
Despite the pandemic, the New York Stock Exchange is currently up 0.9%. Leading the way is Cisco Systems stock, which is breaking records with a 2.5% gain from the start of 2021. However, don't get too excited too soon, as the stock price may very well change in the coming weeks. Before investing, the best solution is to learn more about the company, its strengths and what to consider when buying shares.
Cisco Systems is an American company located in San Jose. Founded in 1984, the brand is the world leader in the design and development of networking equipment for the Internet.
The company offers networking products that include, among others, servers, cloud solutions, routers, switches and network security management. It also develops products and software that meet Internet Protocol (IP) standards, more secure Internet access solutions, etc. On top of this, Cisco offers additional services, such as consulting and technical support.
While based in the United States, the company is expanding its operations in Europe, Asia Pacific and the Middle East.
The American company has a market capitalization of $168,414.19 million. It is part of the oldest stock market index, the Dow Jones, which includes several important companies in the United States. Since its listing, it has issued more than 5,344,336,000 shares on the financial market. Its shareholders include the influential American investment fund Black Rock (6.60%), Vanguard Group (6%) and a range of institutions and private investors.
Cisco Systems operates in the IT sector and faces many competitors. For example, in the field of communication equipment and technology, it ranks only fourth, after Alcatel-Lucent, Allied Telesis and Avaya.
In terms of computer software, the American company ranks 14th worldwide. The market is led by Microsoft, IBM and Oracle.
Since its creation, the brand has sought to establish partnerships with competitors or with other renowned companies, including Salesforce (the 2013 partnership is based on finding common products for professionals), Apple (since 2015, with the aim of boosting the presence iOS devices in enterprises), Ericsson (since 2015 and in order to compete with Huawei products) and Valeo (a partnership that began in 2017 aims to design connected parking garages).
Before you invest in Cisco Systems stock, first find out how the stock price is developing. Instead of relying on current or past data, you should pay attention to the forecasts.
For example, the company plans to increase its net dividend per share to $1.46 in 2021, up from $1.42 last year. It also plans to achieve a yield of 2.99%, up from 2.91% in 2020.
There are many factors that can influence the price of Cisco Systems stock, including partnerships, business development, WiFi and mobile needs, cloud server demand, and competitors.
To invest in the stock, keep up with the news as well. Recently, for example, the company had its biggest rise in years. Its stock tops the Dow Jones index.
In February, Cisco Systems also reported earnings that beat the market consensus. The networking equipment giant was up by 2%.