Tag Archives: CSCO
Investors who are looking for technology stocks that offer strong cash flow, healthy balance sheet, and profitable margins with solid competitive edges can consider the following three companies: Oracle Corporation (ORCL), Cisco Systems, Inc. (CSCO) and Cognizant Technology Solutions Corp (CTSH).
Oracle Corporation is a provider of enterprise software and computer hardware products and services, including databases, middleware and applications. Software license and product support is the most profitable segment of ORCL’s operation. ORCL closed at $34.56 with 1.54% loss on February 7, 2013. ORCL had been trading in the range of $25.3-$36.31 in the past 52 weeks. ORCL has a beta of 1.10.
In early February, ORCL announced the acquisition of Acme Packet Inc. (APKT) for $1.7B net of cash while the company is expanding into the networking equipment market long dominated by Cisco Systems Inc. Analysts believe Acme Packet is a good for ORCL because it expands existing ties with telecommunications providers, many of whom are already heavily dependent on Oracle’s business management software and database for running their internal operations, as reported by Reuters.
The markets have been in a rally mode since the beginning of 2013. The S&P 500 closed above 1,500 for the first time in more than five years on January 25, 2013, as strong earnings continued to boost the index. Investors’ sentiment is very bullish, and the market is driven by extreme greed. Nonetheless, intelligent investors know that too much optimism may not be a good thing, as quoted from Warren Buffett, “Be fearful when everyone is greedy. Be greedy when everyone is fearful.” The central theme of this article is not to predict the market direction, but to review a list of high quality large-cap stocks that generate strong free cash flow while continuing to grow its revenue. So, when the tide turns, investors can still count on steady cash flows from these stocks with solid fundamentals.
|Company Name (Ticker)||Revenue, ttm||Quarterly
Revenue Growth, ttm (yoy)
|Levered Free Cash Flow, ttm||Diluted
|Cisco Systems, Inc. (CSCO)||$46.68B||5.50%||$9.27B||$1.55||2.60%|
|China Mobile Ltd. (CHL)||$86.83B||6.60%||$5.26B||$4.97||3.50%|
|The Coca-Cola Company (KO)||$47.60B||0.80%||$6.42B||$1.91||2.80%|
Source: Yahoo Finance