Cisco’s recent stock performance is the best among its peer group
Cisco (CSCO) was founded in 1984. The company has undergone a number of ups and downs over the past few decades. In 2000, Cisco briefly became the most valuable company in the world, with a market cap of around $500 billion. However, the company went through a period of struggle after that, which reduced its valuation to $150 billion today.
Despite its struggle, Cisco has done well recently. Cisco’s stock price has increased by 33% to $29 in the last year. Comparatively, the stock price performance of Cisco’s competitors has declined. As the chart below shows, VMware’s (VMW) stock has declined by about 16% in the last year, while the stock price of Juniper Networks (JNPR) and Alcatel-Lucent (ALU) have both declined by about 8%.
Cisco has also managed to beat the SPDR S&P 500 ETF Trust (SPY), which has gone up 10% in the last year. SPY is an exchange-traded fund that tracks the S&P 500 Index.
Cisco dominates the switch and router market
Cisco designs, manufactures, and sells Internet protocol–based networking and other products related to the communications and information technology industry. It also provides services associated with these products. The company is mainly known for its dominant position in networking switches and the router market. However, lately, it’s looking to take advantage of growing opportunities in data centers, the cloud, mobility, security, and the Internet of everything (or IoE).