By Aniruddha Ganguly
Publication Date: 2026-01-15 14:50:00
Cisco Systems CSCO shares returned 7.7% in the trailing 3-month period, outperforming the broader Zacks Computer & Technology sector, as well as close peers, Hewlett Packard Enterprise HPE and Arista Networks ANET, driven by an aggressive AI push and growing security dominance. While the broader sector has appreciated 5.1%, shares of Hewlett Packard Enterprise and Arista Networks have dropped 1.8% and 14.4%, respectively. Is there more room for Cisco stock to rise this year? Let’s find out.
Image Source: Zacks Investment Research
Aggressive AI push, strong networking growth and expanding security footprint justifies CSCO’s premium valuation as suggested by the Value Score of D. In terms of the forward 12-month price/sales, CSCO is trading at a premium of 4.77X, higher than the Zacks Computer Networking industry’s 4.63X and Hewlett Packard Enterprise’s 0.72X but lower than Arista Networks’ 14.57X.
