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Cisco joins the tech rally

August 9, 2012: 10:22 AM ET

Most big tech stocks have enjoyed healthy gains in 2012. Apple (AAPL), Microsoft (MSFT), Intel (INTC) and Oracle (ORCL) are all sporting double-digit percentage gains. But not Cisco Systems (CSCO).  The networking company's stock is down year-to-date. But is that about to change?

Shares of Cisco were up about 2% Thursday morning thanks to some positive analyst chatter heading into next week's earnings report. There are growing hopes that corporate demand for Cisco may finally be on the upswing and that the company's continued cost-cutting (i.e. layoffs) efforts will bear fruit.

It may bee too soon to declare a turnaround for Cisco. And to be fair, Cisco's problems are shared by other networking equipment companies. While upstart Palo Alto Networks (PANW) had a hot debut when it went public last month, shares of many other large competitors to Cisco, such as Juniper Networks (JNPR), F5 Newtorks (FFIV) and France's Alcatel-Lucent (ALU) are all in the red in 2012 as well.

Cisco isn't growing as rapidly as it used to. But it still does have a lot going for it though. And with shares trading at less than 10 times fiscal 2013 earnings estimates, it may be a bargain. For more about Cisco, its massive amount of cash (or "caysh" as CEO John Chambers would say) and its dividend, watch today's Buzz video below.

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Paul Lamonica
Paul R. La Monica
Assistant Managing Editor, CNNMoney

Paul R. La Monica is an assistant managing editor at CNNMoney. He is the author of the site's daily column, The Buzz, and also tweets throughout the day about the markets and economy @LaMonicaBuzz. La Monica also oversees the site's economic, markets and technology coverage.

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