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."
--M.K.
