Could Cisco (CSCO) be the next Apple (AAPL)? The Street writer, Richard Saintvilus makes the case that networking giant Cisco has seen its ups and downs over the past couple of years, even while mobile data usage has exploded with the growth of mobile devices. Because that data usage is still rapidly expanding, he believes Cisco may be incredibly undervalued at current levels.
Saintvilus thinks the company has positioned themselves in the mobile data industry, just like Apple positioned themselves in the mobile device industry.
For example, Cisco recently announced their intent to acquire NDS Group, which streams content and security software. The plan is for NDS to help Cisco expand their next-generation video services. If successful, Saintvilus says that the stock could rise to $60 within three years, which is a 200% return from the current levels.
Concurrent with these expectations, Cisco thinks that the mobile data traffic numbers will explode in the next four years, and they project that the number of mobile-connected devices will exceed the world’s population by the end of this year. In addition, mobile connection speed is expected to exceed 1Mbps in 2014, though the current limitations from providers like Verizon (VZ) and AT&T (T) bring doubt.
Regardless, Cisco seems to expect the need to plan for more advanced mobile connectivity, and in good form, they have indeed been planning for it.
Saintlivus says Wall Street hasn’t caught on yet.
Business Section: Investing Ideas
If Cisco has been positioning itself better than anyone else, then they should be able to reap more benefits. Use Kapitall tools to analyze Cisco and Apple further. Do you think they are right in their predictions?
Interactive Chart: Press Play to compare changes in market cap for CSCO, and AAPL:
Interactive Chart: Use the Turbo Chart to compare the stock performance of CSCO and AAPL against the performance of the S&P 500 Index (SPX):
(Written by Danny Guttridge)