While most mega-cap technology stocks have posted impressive rallies this year, the performance of Cisco Systems (CSCO) is an exception. With technology stocks such as Alphabet (GOOGL) and Apple (AAPL) soaring more than +30% this year, Cisco Systems is down -1.5%. While growth in other mega-cap tech stocks is expected to accelerate, Cisco’s growth is expected to slow.
The underperformance of Cisco Systems has continued over the past five years, with its stock price more than 40% below the record Y2K high seen in 2000. Ironhold Capital Management said, “Cisco is in that in-between space, not growing fast enough to be attractive as a growth name, and it isn’t so cheap to like it as a value stock.”
