Intel Corporation (INTC), Cisco Systems, Inc. (CSCO) & More: Undervalued Tech Stocks

Cisco Systems, Inc. (NASDAQ:CSCO) generates a ton of cash flow from operations and has been able to achieve record sales for nine straight quarters. The company is also expecting growth in cloud computing and looking into potential acquisitions to capitalize on the industries growth.  With a low payout ratio and an expected long-term compound annual growth rate (CAGR) of 8.3%, the company has plenty of potential in the years to come.

The not so traditional tech choice

The company currently trades at 10.29 times earnings and at 1.04 times book value.  It also has a cushy dividend yield of 2.7% with a low payout ratio of 28%. Corning Incorporated (NYSE:GLW) is expected to grow earnings at 12% annually over the next five years. It recently reported a revenue increase of 13.7%, about  6% higher than the industry average.

The company has a rock solid balance sheet having ended its first quarter with $5.78 billion or $3.92 per share in cash. Corning Incorporated (NYSE:GLW) has been extremely proactive in decreasing its debt load having paid down around $600 million since the end of 2012. Its increased focus on eliminating debt has dropped Corning Incorporated (NYSE:GLW)’s debt-to-equity from an already marginal 0.16 down to 0.13.

Foolish final words

With the major sell off taking place, it may be time to get back to basics, as Mr. Market has put some great companies on sale. Intel, Cisco Systems, Inc. (NASDAQ:CSCO), and Corning Incorporated (NYSE:GLW) are all very cheap tech companies that happen to sport nice dividend yields and have terrific balance sheets. Now may be a good time to pick up shares at a discount.

Daniel Paterson has no position in any stocks mentioned. The Motley Fool recommends Cisco Systems, Corning, and Intel. The Motley Fool owns shares of Corning and Intel. Daniel is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article 3 Undervalued Tech Stocks originally appeared on Fool.com is written by Daniel Paterson.

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