Hold Your Nose and Buy Cisco

Once again, Cisco (CSCO) reported a good quarter, and once again threw cold water on its outlook, this time with well-placed caution on Europe and enterprise IT demand. Cisco has had a history of snatching defeat from the jaws of victory, with this kind of two-steps-forward-and-one-step-back communication with investors. But aside from the short-term effect on the stock, Cisco is a much better company today than it was a year ago, and the stock's 21% pullback in less than six weeks makes it a table-pounding buy from here.

The company's fiscal third-quarter earnings were solid: revenues were in line, gross and operating profit margins exceeded estimates, and earnings beat estimates by a penny....409 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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