Jim Cramer is Talking About These 5 Stocks

This article presents an overview of Jim Cramer is Talking About These 5 Stocks. For a detailed overview of such stocks, read our article, Jim Cramer is Talking About Trump Media and 11 Other Stocks.

5. Cisco Systems Inc (NASDAQ:CSCO)

Number of Hedge Fund Investors: 60

A caller recently asked Jim Cramer whether she should hold onto her stake in Cisco Systems Inc (NASDAQ:CSCO). Cramer recommended the caller to stay invested in Cisco Systems Inc (NASDAQ:CSCO) since he likes the dividend yield of Cisco Systems Inc (NASDAQ:CSCO) and the growth prospects following Cisco Systems Inc’s (NASDAQ:CSCO) $28 billion acquisition of Splunk.

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.”