Latest news with #CiscoSystemsInc
Yahoo
3 days ago
- Business
- Yahoo
HSBC lowers Cisco to Hold on valuation, slowing business momentum
-- HSBC on Friday downgraded Cisco Systems Inc (NASDAQ:CSCO) to Hold from Buy on elevated valuation and slowing business momentum, and cut its price target to $69 from $73. The bank also lowered its adjusted earnings per share (EPS) estimates for fiscal years 2026 (FY26) to 2028 by around 7% to 14% to reflect a weaker-than-expected outlook. Cisco's fourth-quarter fiscal 2025 results and fiscal 2026 guidance were in line with consensus but came in below HSBC's estimates. Revenue rose 7.6% year-on-year to $14.67 billion, matching both HSBC and consensus expectations. Non-GAAP operating margin was 34.3%, up 1.73 percentage points from a year earlier, but below HSBC's forecast of 35.3% and in line with consensus. Non-GAAP EPS increased 13.8% to $0.99, also in line with estimates. The company's networking segment showed improvement, with revenue growth accelerating from a 23.5% decline in the first quarter to a 12.2% increase in the fourth. However, HSBC analysts note that Cisco's fiscal 2026 revenue guidance of 5% growth, combined with slowing growth in remaining performance obligations and backlog, suggests 'the restocking effect may be coming to an end sooner we had expected.' Although Cisco reported over $2 billion in AI infrastructure orders in fiscal 2025, the strength 'seems to be getting offset by weakness elsewhere.' In security, revenue grew 9.2% in the quarter and orders rose in the mid-single digits, with double-digit growth excluding the U.S. federal market. Still, HSBC cut its long-term revenue CAGR estimate for the segment to 8% from around 10%, saying overall growth is 'disappointing' despite good cross-selling traction from the Splunk acquisition. Cisco shares have risen 42% since August 2024, outperforming the Nasdaq by 19 percentage points, and 'appear fairly valued," analysts said. The stock trades at 17.2 times estimated 2026 adjusted earnings, in line with other slow-growth companies under the bank's coverage. The new price target is based on a 17.5 times multiple applied to HSBC's next 12-month non-GAAP EPS estimate of $3.93, down from $4.16. The target implies a 2% downside. Related articles HSBC lowers Cisco to Hold on valuation, slowing business momentum Mizuho predicts this is the next $1 trillion stock Morgan Stanley turns more bullish on Apple, sees iPhone build boost Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
7 days ago
- Business
- Yahoo
U.S. stock futures inch higher ahead of inflation reports this week
U.S. stock-market futures advanced Sunday, as investors await a potentially tumultuous week. After wavering in early trading Sunday night, Dow Jones Industrial Average futures YM00 were last up around 100 points, or 0.2%. S&P 500 futures ES00 and Nasdaq-100 futures NQ00 also edged higher. The price of gold GC00 slipped more than 1%, while bitcoin BTCUSD neared the $120,000 level. Crude oil futures CL.1 declined. The ICE U.S. Dollar Index DXY, a measure of the currency against a basket of six major rivals, gained modestly. My father was worth millions. I suspect my mother is stealing my inheritance. What can I do? Amazon documentary exposes 'neglect and pain' in many nursing homes. It's only going to get worse. 'Things are getting tougher': I'm struggling with $145,000 in debt. Should I refinance my 3.5% mortgage? 'I'm tired of corporate America': My wife and I have $1.65 million. I'm 61. Can I retire already? The stock market's rebound may be tested this week by important inflation data, with data from the consumer-price index coming Tuesday and data from the producer-price index due Thursday. Meanwhile, President Donald Trump will host Russian President Vladimir Putin in Alaska on Friday to discuss a potential cease-fire agreement in Ukraine. Hotter inflation numbers could give investors pause, and derail the months-long market rally, reviving worries of stagflation, where both inflation and unemployment rise. Read more: Stock-market rebound to be tested by inflation reports as stagflation threat emerges Meanwhile, the Ukraine talks could affect everything from sanctions to energy markets to arms sales. 'The coming week has the feel of a market moving from a smooth glide to the edge of a wind shear, where both the macro currents and the geopolitical thermals could shift direction in an instant,' Stephen Innes, managing partner at SPI Asset Management, said in a weekend note. Stocks gained last week, with the Nasdaq Composite closing Friday at another record high. For the week, the Dow Jones Industrial Average rose 1.3%, the S&P 500 gained 2.4% and the tech-heavy Nasdaq climbed 3.9%, according to Dow Jones Market Data. This week's earnings calendar is lighter, with just eight S&P 500 companies reporting. Those include Cisco Systems Inc. CSCO, AMC Entertainment Holdings AMC, Deere & Co. DE and WeightWatchers parent WW International Inc. WW. Also see: Nvidia and AMD reportedly will give U.S. government 15% of its China chip revenues 'She lives alone': My mother-in-law, 86, gets $1,300 in Social Security. Is that enough to live on? Dot-com parallel leads to fear of what's next for this record-busting stock market Why Wall Street's biggest bear is expecting a 14% stock-market pullback before the end of 2025 Medicare will test using AI to help decide whether patients get coverage — which could delay or deny care, critics warn Sign in to access your portfolio
Yahoo
11-07-2025
- Business
- Yahoo
Is American Century U.S. Quality Value ETF (VALQ) a Strong ETF Right Now?
Making its debut on 01/11/2018, smart beta exchange traded fund American Century U.S. Quality Value ETF (VALQ) provides investors broad exposure to the Style Box - All Cap Value category of the market. Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry. Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency. On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta. Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance. This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results. Because the fund has amassed over $251.3 million, this makes it one of the larger ETFs in the Style Box - All Cap Value. VALQ is managed by American Century Investments. This particular fund, before fees and expenses, seeks to match the performance of the AMERICAN CENTURY U.S. QUALITY VALUE INDX. The American Century U.S. Quality Value Index seeks to select securities of large and mid-capitalization companies that are undervalued or have sustainable income. For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same. Operating expenses on an annual basis are 0.29% for VALQ, making it on par with most peer products in the space. The fund has a 12-month trailing dividend yield of 1.73%. Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis. Representing 26% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Healthcare and Consumer Staples round out the top three. When you look at individual holdings, Cisco Systems Inc (CSCO) accounts for about 2.81% of the fund's total assets, followed by Lockheed Martin Corp (LMT) and Merck + Co. Inc. (MRK). Its top 10 holdings account for approximately 25.2% of VALQ's total assets under management. Year-to-date, the American Century U.S. Quality Value ETF has added about 4.56% so far, and is up about 12.57% over the last 12 months (as of 07/11/2025). VALQ has traded between $54.09 and $64.64 in this past 52-week period. The fund has a beta of 0.87 and standard deviation of 14.59% for the trailing three-year period. With about 231 holdings, it effectively diversifies company-specific risk . American Century U.S. Quality Value ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Value segment of the market. However, there are other ETFs in the space which investors could consider. Fidelity High Dividend ETF (FDVV) tracks Fidelity Core Dividend Index and the iShares Core S&P U.S. Value ETF (IUSV) tracks S&P 900 Value Index. Fidelity High Dividend ETF has $5.86 billion in assets, iShares Core S&P U.S. Value ETF has $21.36 billion. FDVV has an expense ratio of 0.16% and IUSV changes 0.04%. Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Value To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American Century U.S. Quality Value ETF (VALQ): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-06-2025
- Business
- Yahoo
Cisco Unveils New Network Architecture for Workplace AI Transformation
Cisco Systems Inc. (NASDAQ:CSCO) is . On June 10, the company unveiled a new secure network architecture designed to accelerate workplace AI transformation. The new architecture addresses urgent challenges in the AI era, including explosive network traffic. It will also address mission-critical uptime requirements and address any security threats. Engineers using the latest Cisco TelePresence technology to collaborate with colleagues around the world. With the new secure network architecture, Cisco sets up a new standard for organizations to navigate the challenges of skyrocketing cyber threats and network traffic. Consequently, the company will leapfrog the industry by reimagining how networks are managed and secured. AgenticOps, Cisco's AI-driven approach to running modern IT operations, will supercharge the new architecture. It's powered by a new deep network model, a domain-specific large language model trained on decades of company expertise. The hardware powering the new architecture is orderable this month through the company or through certified partners. The unified management platform is also available as the Cisco AI assistant remains in public beta. Cisco Systems Inc. (NASDAQ:CSCO) is a technology company revolutionizing how organizations connect and protect in the AI era. It boasts industry-leading AI-powered solutions and services that enable customers, partners, and communities to unlock innovation, enhance productivity, and strengthen digital resilience. While we acknowledge the potential of CSCO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
13-06-2025
- Business
- Yahoo
IBM, Google Emerge As Top Investors In Quantum Computing With Most Patents Issued In 2025: 'Only Two Companies Seriously Investing,' Says Martin Shkreli
Many big tech companies, including startups, are foraying into the emerging field of quantum computing. Out of the 300 quantum computing patents issued in 2025, two companies have received the most. What Happened: International Business Machines Corp. and Alphabet Inc.'s (NASDAQ:GOOGL) Google appear to have made significant investments in the quantum computing space on a year-to-date basis. According to the data shared by Martin Shkreli, there was a steep drop-off in issued patents after IBM and Google, suggesting that other companies are either smaller players or not prioritizing quantum computing as heavily. IonQ Inc., D-Wave Quantum Inc., PsiQuantum, Quantinuum, and Intel Corp., followed the first two firms. Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Furthermore, he highlighted that Wells Fargo & Co. (NYSE:WFC), Bank of America Corp. (NYSE:BAC), and JPMorgan Chase & Co. (NYSE:JPM) also hold quantum patents, which he describes as 'big company spend.' Large corporations often invest in emerging technologies like quantum computing to hedge against future disruptions, even if they're not leading the field. Shkreli also notes that companies like Cisco Systems Inc. (NASDAQ:CSCO) are working on Quantum Key Distribution (QKD) and quantum networking patents. QKD uses quantum mechanics to secure communications, offering theoretically unbreakable encryption. Lastly, Shkreli suggests that Microsoft Corp.'s patent output doesn't match its spending or public statements, implying they may be focusing more on development or partnerships rather than patenting their work. Why It Matters: The evolving quantum computing space relies on qubits, which, unlike classical bits in traditional computers, can superpose and entangle 0 and 1 to solve complex problems. While still in the development stage, many publicly listed firms are involved in their research and development. Here's a list of a few companies and an exchange-traded fund that tracks such YTD Performance One Year Performance International Business Machines Corp. (NYSE:IBM) 28.00% 66.58% Alphabet Inc. (NASDAQ:GOOG) -6.21% -0.43% Intel Corp. (NASDAQ:INTC) 2.27% -32.77% Cisco Systems Inc. (NASDAQ:CSCO) 8.61% 40.71% Microsoft Corp. (NASDAQ:MSFT) 12.91% 7.16% IonQ Inc (NYSE:IONQ) -7.89% 399.37% D-Wave Quantum Inc (NYSE:QBTS) 72.01% 1325.00% Rigetti Computing Inc (NASDAQ:RGTI) -37.40% 1127.45% Quantum Computing Inc (NASDAQ:QUBT) 1.12% 2864.06% Defiance Quantum ETF (NASDAQ:QTUM) 8.24% 38.92% The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, fell on Wednesday. The SPY was down 0.29% at $601.36, while the QQQ declined 0.34% to $532.41, according to Benzinga Pro data. The futures of the S&P 500, Dow Jones, and Nasdaq 100 indices fell on Thursday. Read Next: Are you rich? Here's what Americans think you need to be considered wealthy. If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it? Photo courtesy: JHVEPhoto / Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? This article IBM, Google Emerge As Top Investors In Quantum Computing With Most Patents Issued In 2025: 'Only Two Companies Seriously Investing,' Says Martin Shkreli originally appeared on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
