BARGAIN GROWTH: Cisco Systems
Market Cap: $113.8 billion
PEG ratio: 1.5
Earnings Growth: 11%
Debt/equity ratio: 0.28
Cisco's business clientele is still retreating, but CEO John Chambers recently announced that its customers' businesses are stabilizing -- a welcome sign of relief for investors in the networking company. Despite declining sales, Cisco still has more than $30 billion in cash. We remain convinced of the company's long-term growth prospects because of its crucial role in building internet infrastructures.
John Marchetti, an analyst at Cowen and Co., thinks Cisco is poised to outperform this year. "With customer budgets now set and a more stable operating backdrop, we expect revenue growth to return to more seasonal norms."
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Unilever
Last updated June 11 2009: 10:27 AM ET
Criteria include PEG ratios (price/earnings ratio divided by earnings growth) below S&P 500's PEG rati of 2.09, long-term earnings growth equal to 7% or more, and a debt-to-equity ratio below 0.33. All data related to stock price as of June 1, 2009. Earnings growth based on Wall Street estimates for the next three to five years.
