Should You Avoid Cisco Systems Inc. (CSCO)?

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Cisco Systems, Inc. (NASDAQ:CSCO) but similarly valued. We will take a look at Philip Morris International Inc. (NYSE:PM), International Business Machines Corp. (NYSE:IBM), Unilever N.V. (ADR) (NYSE:UN), and Allergan, Inc. (NYSE:AGN). All of these stocks’ market caps resemble CSCO’s market cap.

As you can see these stocks had an average of 66 hedge funds with bullish positions and the average amount invested in these stocks was $9.76 billion. That figure was $4.31 billion in CSCO’s case. Allergan, Inc. (NYSE:AGN) is the most popular stock in this table. On the other hand Unilever N.V. (ADR) (NYSE:UN) is the least popular one with only 12 bullish hedge fund positions. Cisco Systems, Inc. (NASDAQ:CSCO) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard AGN might be a better candidate to consider a long position.

Disclosure: None