Cisco Systems, Inc. (NASDAQ:CSCO) remained one of Fisher’s top picks as well. Cisco, which made our list of the ten most popular tech stocks among hedge funds in the third quarter (see the full top ten list), is considerably cheaper than peers in the networking and communications business: its trailing P/E multiple for example, is only 13. We’d also note that in its most recent fiscal quarter (which ended in October), earnings were up 18% compared to the same period in the previous fiscal year, with revenue growth being more modest but still a respectable 6%. We think it’s worth doing more research on the company.
Fisher also liked Oracle Corporation (NASDAQ:ORCL), with a position of almost 20 million shares as the fund entered 2013. Oracle is another stock with good recent earnings growth, and it carries trailing and forward P/Es of 16 and 12 respectively. Renaissance Technologies, whose founder Jim Simons is now a billionaire, initiated a position in Oracle during the third quarter (find more stocks Renaissance was buying) and the company actually made the top ten tech stocks list as well. The software company could be another potential value pick if it continues its earnings growth.