Boston, MA 01/17/2013 (wallstreetpr) – In the ranking of 30 stocks making up the Dow Jones Industrial Average, analyst recommendations rank Cisco Systems, Inc. (NASDAQ:CSCO) at position 5 among the top picks. The stock is also ranked among the top picks at position 93 among the 500 companies in the broader S&P 500 Index according to ETF Channel.
To arrive into these conclusions, Cisco Systems, Inc. (NASDAQ:CSCO) was assessed alongside other stocks and resulting analyst opinions tallied and averaged. Usually, the underlying components of individual companies are factored into the analyst sentiments on a particular stock.
Usually, top ranked stocks are those believed to present perfect opportunities to perform better than their peers. Popular analyst picks usually do well and turn good benefits to investors. However, it is never a straight path as top rated stocks can also burn value if factors in the market or industry change dramatically.
Companies with lower ranking among analysts are assumed to be those with limited chances of doing well. Once again, it is never cast in stone that such stocks perform poorly, instead, the bearish ranking offers opportunity for bullish investors to identify stocks with a lot of upside potential but which may be currently out of favor with most investors.
Opportunities and challenges
Going back to Cisco Systems, Inc. (NASDAQ:CSCO), analysts believe that this stock has several strength areas and should thus do well and return value to investors in the medium and long-term. However, that the company is not topping the list of analysts’ recommendations suggests that it has fallen out of favor with many investors. Note Cisco used to be the leader in everything Internet-networking during its heydays. But its fall from glory has been contributed to by intense competition and weak economic situation in its key markets and segments.
Cisco Systems, Inc. (NASDAQ:CSCO) plays in the equipment manufacturing sector which brings it together with other companies like Nokia Corporation (NOK) and Qualcomm Inc (QCOM). Over the past few years, Cisco has suffered big drop in its equipment business in key markets like China where competition has gone red-hot.
Bottom line
That analysts still believe that Cisco Systems, Inc. (NASDAQ:CSCO) ranks among the top performance should be a useful reference point for investors thinking about investing in this stock.
