Buy Cisco System Shares: The Ultimate Guide
Published: December 13, 2020 by Valentina
When we browse the internet, we need to know that between us and the website we are visiting there are a long series of network devices and most of these are manufactured by a single company: Cisco. For this reason, many investors are interested in buying Cisco System shares, but is this a good time to invest?
OnlineTradingCourse.net, is renowned for its analysis of the best stocks. In this case, we have made a detailed assessment of the company, its turnover, profits, and its performance on the stock exchange to get a forecast for the future of this company.
If you decide to buy Cisco System shares, in order to do it safely, just follow these 3 steps:
- Choose a CFD Broker that offers a safe and commission-free platform.
- Practice on the Demo account.
- Make a small deposit to invest on the real market.
After careful evaluations, the best trading platform to buy Cisco System shares is that of eToro, which allows you to trade online safely and without paying commissions.
Here are the best platforms to invest:
Min. Deposit: 50€
Min. Deposit: 100€
Min. Deposit: 50€
Min. Deposit: 250€
Min. Deposit: 100€
Min. Deposit: 250€
Cisco System: General information
In San Jose, California is the headquarter of the largest network interconnect device company in the world: Cisco Systems Inc.
Cisco Systems was founded in 1984 by Leonard Bosack and Sandy Lerner, two computer scientists at Stanford University.
The company went public on the New York Stock Exchange in 1990 and achieved a market capitalization of $ 224 million which rose to $ 500 billion during the famous dot com bubble in 2000.
This industrial group develops, manufactures, and sells hardware, software, telecommunications equipment, and other high-tech services and products.
Cisco is listed on numerous American stock indices, among which we cannot help but mention the NASDAQ, the Dow Jones, the S&P 500, the Russell 1000, and many others.
In 2020, prestigious Fortune magazine ranked Cisco fourth on its annual list of the 100 Best Companies to Work For. The ranking is based on an employee survey.
Cisco System Shares: Real-time quotation and price
Cisco System business model
This company is a global leader in the networking and communications equipment market.
The business model is based on the supply of all the products and services necessary to build and use a network with the best performance in terms of speed, reliability, and data security.
Cisco offers its products to the following types of customers.
- Service Providers. Service providers include telecom operators and Internet, cable and wireless service providers.
- Businesses. Companies include large regional, national or global organizations with multiple locations and over 1,000 employees.
- Commercial. Commercial activities include small and medium-sized enterprises with less than 1,000 employees.
- Public sector. The public sector includes federal governments, state governments, local governments, and educational institutions.
Cisco’s numbers show us a very healthy company, here are those of last year:
- Revenue: $ 51.90 billion
- Net profit: $ 11.62 billion
- Number of employees: 75,900
- Market cap: $ 169 billion
How to buy Cisco System shares
To buy Cisco System shares, we must start from a crucial question: How do you invest in this share?
Just use a reliable CFD Broker, which must necessarily meet these requirements:
- It must offer CFDs, contracts that allow you to trade on any stock both up and down (short selling).
- You don’t have to pay commissions
- It must have at least one license issued by FCA or CySEC
To buy Cisco System shares (or sell them) on one of the platforms made available by these brokers you must:
- Buy the Cisco CFDs to earn if the shares go up.
- Sell the Cisco CFDs to earn if the shares go down.
When the price reaches the desired amount, the operation is closed and any net profits are collected, without commissions.
Where to buy Cisco System shares
Now that we have seen which are the most suitable intermediaries to buy Cisco System shares, we must choose the best platforms.
In fact, trading software plays a fundamental role in investments and allows you to operate safely and with excellent operational support.
OnlineTradingCourse.net has selected what it considers to be the best platforms where to buy Cisco System shares: eToro, ForexTB and Trade.com. Let’s see the main features of these brokers and their trading platforms.
eToro: Security and speed to buy Cisco System shares
eToro thanks to its subscriber base, which has now exceeded 10 million users, can definitely be defined as the absolute leader in online trading and its reliability is confirmed by numerous licenses, including the one issued by FCA for the UK.
Here is the eToro trading platform with the Cisco CFD in evidence:
To buy Cisco System shares (or sell them) you have to click on “Invest”, decide whether to Buy or Sell the stock and how much to invest in the operation.
This intermediary has also become famous thanks to a patented automatic investment system: Copy Trading.
This is a feature that allows you to copy the operations of the best investors in the world (chosen directly by the user on eToro), in a fully automated manner and at no additional cost.
Copy Trading works like this:
- Register on eToro
- In the section “people”, you can choose the traders to copy based on the performance.
- With a click, Copy Trading will copy exactly the same operations of the chosen traders in your account.
- At this point, you will get the same returns as these trading experts (of course, in proportion to your investment), without doing anything else.
Here are some of the best eToro Traders (which can be copied):
Both Copy Trading as well as traditional trading can also be tested on a free Demo account, without taking real risks.
For more details you can read our full eToro review.
ForexTB: Operational support to buy Cisco System shares
ForexTB is an online broker who has made a different choice: It has tried to offer operational support to investors, in order to improve the return performance.
Thanks to the CySEC license that allows it to trade throughout Europe, ForexTB offers the possibility to choose between two trading platforms, both free:
- The web platform is easy to use and can be entered from any browser without downloading any software.
- Metatrader 4 is more technical and full of professional indicators and meets the needs of the more experienced traders.
Here’s what the Cisco CFD looks like on the ForexTB web platform:
To buy Cisco System shares (or sell them) simply click on Sell or Buy and decide how much money to invest in the operation.
The operational support, so important for this Broker, is based on free Trading Signals that are sent to all investors. They are reliable and very precise indications, developed by Trading Central and which are successful in 70% of cases.
All traders with little experience can download for free what is considered the best trading course (at a basic level) in the world. This pdf offers a detailed description of trading and the main technical analysis strategies that everyone must know.
Trade.com: Free training to buy Cisco System shares
Trade.com has become very popular in recent years, its platform is very clear and full of professional tools and indicators, and it offers a series of courses to hone trading techniques.
It is a safe intermediary with an FCA license. Here’s what the Cisco CFD looks like in the Trade.com trading platform:
To buy (or sell) Cisco System shares, you need to click on Buy (buy) or Sell (sell) and decide how much to invest in the single operation.
The first step is to know the basics of technical analysis and the trading course of this Broker is essential to learn them. It is a very complete ebook and can be downloaded for free from the link below:
To open a real account with Trade.com, you need at least 100 Euros, an amount lower than the average of the competitors, but to get started there is always the totally free and unlimited Demo account.
Is buying Cisco System shares worth it?
Cisco is the world’s largest manufacturer of network routers and switches. Although it is a slow-growing business, it generates a stable cash flow that makes the stock a rather attractive investment.
Cisco’s revenues have fallen due to the slowdown from China during the trade war and the limitations imposed by the Covid-19. However, according to the main analysts, this is a temporary situation.
Despite the crisis, Cisco held up well financially and continued to buy smaller companies to strengthen its business.
In the graph below, we see the growth trend of the last 5 years, which slowed down before the outbreak of the pandemic and is now trying to regain momentum.
Cisco’s investments have not attracted many bulls and the stock remains underestimated compared to the real trend of the company.
Could this be the right time to invest?
Cisco System: Competitors
The main competitors of Cisco are numerous companies producing network devices, but none at the moment is able to dent the leadeship of this American giant. Here are Cisco’s biggest competitors:
Buy Cisco System Shares: Predictions
Cisco posted better-than-expected fourth-quarter fiscal results, but also experienced a 9% year-over-year revenue drop, so you need to be very cautious when considering the stock’s future.
In the short term, Cisco’s overall performance is unlikely to improve, but in the long term, analysts are very optimistic and we have collected the ratings of the major international investment banks to make a reliable forecast on this stock.
- Morgan Stanley has reconfirmed the “buy” rating for the Cisco stock (NASDAQ: CSCO) with an indicative target of $ 54.00.
- Robert W. Baird reiterated a “wait” rating and issued a $ 48.00 target price on Cisco shares
- Bank of America upgraded Cisco’s stock from a “neutral” rating to a “buy” rating and raised the target price for the company from $ 48.00 to $ 55.00.
- MKM Partners increased their target price for Cisco’s stock from $ 40.00 to $ 48.00 and assigned the company a “neutral” rating.
- Royal Bank of Canada has reaffirmed a “buy” rating and set a price target of $ 48.00 on Cisco shares.
- Needham & Company LLC reiterated a “hold” for Cisco shares, pending the next quarterly results.
Cisco System shares: Target price
Leading Wall Street analysts have issued positive assessments for Cisco’s future. Their twelve-month average target price is $ 48.86, expecting the stock to grow by 20.34% in one year.
According to leading analysts, the Cisco stock is underestimated but a strong reaction will only occur in the long term. So, although this may be a good time to buy Cisco System shares, you need to be patient and keep the stock in your portfolio until you see real returns.
If you have little experience in online trading it is advisable to start with a Demo account, practice, then make the minimum deposit required and move on to real trading, which certainly offers greater satisfaction.
Here are the official links of the free Demo accounts offered by the best trading platforms:
- Practice the eToro Demo account for free by clicking here
- Register for free on ForexTB and access the Demo account from this link
- Access the Trade.com Demo account for free from this link
Yes, but to get the best returns you need to pay attention to the duration of the investment.
CFD Brokers are the safest and most convenient intermediaries to buy Cisco System shares.
Cisco’s Target Price is set at $ 48.86 per share.
The most suitable platform for investing in Cisco is that of eToro, safe and without commissions to pay.