5 Tech Companies Surviving the Bear

Stock #2: Cisco (CSCO)

Cisco Systems (CSCO) is a giant networking and communications company. Its products are a vital part of global commerce and play a role in improving productivity across the globe. It’s that productivity that will propel us into the next business cycle, and with the recession CSCO is a leaner and meaner competitor. CSCO has survived while others like Nortel have floundered.

When good times return, I’m betting that CSCO will be a huge winner. During the bear, CSCO has remained profitable. That said, sellers in the market cut CSCO’s valuation nearly in half over the last year. And that’s an opportunity for investors. Shares trade for just 11 times trailing earnings and 10 times forward earnings. With the ability to deliver double-digit growth during normal economic times, I would say these prices are a bargain.

Next: Stock #3 – Intel