5 Best Communication Stocks To Buy According To Hedge Funds

In this article, we discuss 5 best communication stocks to buy according to hedge funds. If you want to read our detailed discussion on the communication industry, head directly to 12 Best Communication Stocks To Buy According To Hedge Funds. 

5. Cisco Systems, Inc. (NASDAQ:CSCO)

Number of Hedge Fund Holders: 64

Cisco Systems, Inc. (NASDAQ:CSCO) is a global company that designs, manufactures, and sells networking and communication products worldwide. The company’s offerings include switches, routers, wireless products, and computing solutions. Cisco Systems, Inc. (NASDAQ:CSCO) is one of the top communication stocks to watch. On November 15, Cisco Systems, Inc. (NASDAQ:CSCO) reported financial results for the first fiscal quarter of 2024. The company announced a non-GAAP EPS of $1.11 and a revenue of $14.67 billion, topping Wall Street estimates by $0.08 and $40 million, respectively. 

According to Insider Monkey’s third quarter database, 64 hedge funds were bullish on Cisco Systems, Inc. (NASDAQ:CSCO), compared to 55 funds in the earlier quarter. Cliff Asness’ AQR Capital Management is the largest stakeholder of the company, with a position worth $611.6 million. 

Oakmark Fund made the following comment about Cisco Systems, Inc. (NASDAQ:CSCO) in its Q3 2023 investor letter:

“Cisco Systems, Inc. (NASDAQ:CSCO) is the leading networking solutions company. Networking equipment becomes more important as businesses modernize their IT infrastructure, and Cisco is well positioned to capture this demand given its broad portfolio and highly effective go-to-market strategy. Cisco is transitioning away from selling mainly transactional hardware and toward selling more software and subscriptions. This shift is expected to accelerate revenue growth, improve operating margins and build recurring revenue. Despite these notable business improvements, Cisco still trades near a trough valuation relative to the S&P 500 Index. More recently, Cisco announced its intention to acquire Splunk, a leader in security and observability, adding to its already strong position in the increasingly important security market. At a low-teens multiple of our estimate of normalized earnings, Cisco is trading comfortably below our estimate of intrinsic value.”