The major stock market indexes attempted a comeback yesterday, as Congress appeared to be nearing a deal that would raise the debt ceiling in the short term and avoid a disastrous government default. In addition…
However, supply chain issues and high inflation continue to worry investors. According to a Bankrate survey, most top experts believe that a stock market correction is likely within the following year. So, it would be wise to scoop up the shares of fundamentally strong large-cap stocks amid this market volatility to ensure stable returns.
Large-cap stocks Cisco Systems, Inc. (CSCO – Get Rating), Novo Nordisk A/S (NVO – Get Rating), HOYA Corporation (HOCPY – Get Rating), and Mettler-Toledo International Inc. (MTD – Get Rating) have immense potential based on their market dominance and fundamental strength. Also, these stocks are rated ‘Strong Buy’ in our POWR Ratings system and have an ‘A’ grade for Quality. So, it could be wise to bet on these stocks now.
With a market capitalization of $227.50 billion, CSCO designs, manufactures, and sells Internet Protocol-based networking and other communications and information technology products. In addition, it provides infrastructure platforms, including networking technologies of switching, routing, wireless, and data center products.
CSCO acquired Socio Labs, Inc. on July 8. Jeetu Patel, the company’s executive vice president and general manager, said, “The acquisition of Socio Labs is another example of how Cisco is rapidly addressing the evolving needs of our Webex customers and continuing to execute on our vision of providing the most seamless, inclusive, engaging and intelligent platform for meetings and events.”
CSCO’s net revenue increased 8% year-over-year to $13.10 billion for the fiscal fourth quarter that ended July 31, 2021. The company’s non-GAAP operating income grew 10% year-over-year to $4.4 billion, while its cash flow from operating activities increased 18% year-over-year to $4.50 billion. Also, its non-GAAP EPS came in at $0.84, up 5% year-over-year.
In terms of trailing-12-month EBIT margin, CSCO’s 27.63% is 218.1% higher than the industry average of 8.69%. In terms of trailing-12-month net income margin, the stock’s 21.26% is 257.8% higher than the industry average of 5.94%.
CSCO’s EPS is expected to increase 7% year-over-year to $3.67 in fiscal 2023. In addition, it surpassed Street EPS estimates in each of the trailing four quarters. Also, the company’s revenue is expected to increase 6.1% year-over-year to $52.88 billion in fiscal 2022. Over the past year, the stock has gained 39.8% to close yesterday’s trading session at $53.94.
CSCO’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall grade of A, which equates to a Strong Buy rating in our proprietary ratings system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting. It has an A grade for Quality, and a B grade for Stability.
Headquartered in Bagsvaerd, Denmark, NVO is a healthcare company engaged in the research, development, manufacture, and marketing of pharmaceutical products worldwide. It operates in two segments: Diabetes and Obesity care and Biopharm. Also, it has collaboration agreements with Lund University, bluebird bio, Inc. (BLUE), and Lumen Bioscience, Inc. It has a market capitalization of $221.01 billion.
NVO and Prothena Corporation plc (PRTA) announced on July 12, 2021, that the companies have entered into a definitive…
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