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Cisco's Got Room to Run: Money Pros

Wednesday, 8 Feb 2012 | 7:23 PM ET

“As a value investor I don’t feel I’ve missed it,” says Karen Finerman. “Sure I could have bought Cisco cheaper a few months ago, but that’s irrelevant now.”

The Fast Money pro reveals that she’s putting Cisco on her radar after the company posted results that beat Street expectations.

Cisco posted fiscal second-quarter earnings excluding items of 47 cents per share; revenue was $11.5 billion.

Analysts had expected the company to report earnings excluding items of 43 cents a share on $11.23 billion in revenue.

The results were strong. And the company had good things to say. "Our operational focus continues to yield positive," says CEO John Chambers. “The multiple is still very low versus their historic low,” Finerman muses. “It’s certainly worth a look.”

Cisco Shares Up on Earnings Beat
The Fast Money traders with the play on Cisco's earnings beat, and Brian Marshall, ISI Group analyst, discusses his "buy" rating on the tech giant, and the upside potential in the stock. Also, a look at the risk/reward profile of Juniper versus Cisco.

“It’s 40% cheaper as compared to the stock's 5-year historical price,” adds Tim Seymour. He too thinks Cisco should have more upside.

Top strategist Brian Marshall is more enthusiastic.

"Clearly the company is back on track. The company now has momentum," he says.

Marshall says there's a lot that he likes. "They grew revenue 11% year over year. They raised their dividend. (Cisco said on Wednesday it plans to pay a quarterly dividend of $0.08 per common share, up 2 cents from the previous quarter.) They had some good product cycles. Things are moving in the right direction. Numbers should be going up."

Looking at the results a little more closely, Net income grew to $2.2 billion, or 40 cents per share, from $1.5 billion, or $27 per share, a year earlier.





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Trader disclosure: On Feb. 8, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Seymour is long AAPL; Seymour is long BAC; Seymour is long CSCO; Finerman is long AAPL; Finerman is long BAC; Finerman is long JPM; Finerman is long IBM; Finerman is long HPQ; Finerman is long NTAP; Finerman is long CMI and short calls; Najarian is long AAPL; Najarian is long BAC calls; Najarian is long C; Najarian is long JPM calls; Najarian is long MS; Najarian is long CSCO and long calls; Najarian is long YHOO; Najarian is long HPQ; Najarian is long WFM calls; Najarian is long V calls; Murphy is short WHR;

For Ron Insana
No disclosures

For Karen Short
(WFM) BMO Capital Markets or an affiliate received compensation for products or services other than investment banking services within the past 12 months. This issuer is a client (or was a client) of BMO Nesbitt Burns Inc., BMO Capital Markets Corp., BMO CM Ltd. or an affiliate within the past 12 months: Non-Securities Related Services.
BMO Capital Markets makes a market in this security (WFM).

For Aaron Kessler
No disclosures



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