Why Cisco (CSCO) Needs a Key Acquisition

The communications technology manufacturing industry, with a market cap around $90 billion. However, this volume has made it tough for the business to navigate the quick cloud computing & wireless district network division.

 The business grew EPS by only 5 to 6 percent yearly for the last 5 years. As well, the corporation is estimated to only see limited development over the next five years, with an 7% EPS yearly enlargement rate, so is now a good time to purchase Cisco?

Although the company made its main acquisition in 7 years earlier this year, we consider Cisco can build a bigger splash in the cloud computing region. Cisco has been in a heated fight with a numeral of smaller companies that have been aggressive its communications equipment market share, namely in the cloud.

We presently see little cause to invest in Cisco, even with a 3.2 percent extra yield & a trailing P/E of 12x, given the other superior enlargement opportunities in the message & wireless region network optimization space.