As second quarter earnings come in, tech stocks are doing well, helping the stock market rally and returning favor to growth stocks. Indeed, now may be time for an investing idea: look to some of the more established stocks that are considered growth stocks. And one of those right now is Cisco Systems (CSCO).
MarketWatch is offering a look at five tech stocks that could help your investment portfolio, and Cisco Systems is one that I wholeheartedly agree with. Here is what MarketWatch has to say about this investing idea:
“Six or seven years ago, Cisco realized the initial growth phase of the
Internet had been built out,” [fund manager John Jostrand] said. “They’ve aggressively expanded
into new markets and recast itself as a force in new technologies that
will shape markets for years to come.”
Jostrand expects the Silicon Valley tech giant to generate compounded
annual average earnings growth of 19% through 2010. That’s based on
revenue growth of around 15% per year. “Their newer technologies are
clearly proven now and their customers love it,” Jostrand said.
Right now, Cisco Systems is dropping a little bit on the stock market, but it is also reasonably priced, and poised with fairly good potential for growth (hence its classification as a growth stock). And, because Cisco is actually an established company (it survived the dotcom bust), it has a reasonable chance of continuing to remain viable. The technology sector is awash with interesting choices — including renewable energy — and you can limit your risk in this area by choosing established companies to help balance our your portfolio.
Disclaimer: I am not a professional stock investor or investment professional. I am an amateur interested in the stock market. All investment comes with risk, and even the best investment advice won’t protect you from the possibility of loss. Do your own research and/or consult with an investment professional before making investment decisions.
financial goals, tech stocks, growth stocks, investing idea