Cisco Systems (CSCO) looks like a buy

Internet networking is essential to the successful operation of businesses, governments, educational institutions and other forms of modern human endeavor. The world's leading provider of networking hardware is headquartered in San Jose, California.

Cisco Systems (NASDAQ: CSCO) provides IP-based networking products and related devices used to transport data, voice and video around the world. Its main offerings are routers and switching systems. The former interconnect computer networks and the latter connect end users, servers and workstations. Other products include remote access servers, IP telephony equipment, optical networking components and security systems. Primary customers are large enterprises and telecommunications service providers. Cisco has strategic alliances with numerous major technology companies, including IBM (NYSE: IBM), Intel (NASDAQ: INTC) and Microsoft (NASDAQ: MSFT). Competitors include Alcatel-Lucent (NYSE: ALU), Juniper Networks (NASDAQ: JNPR) and Nortel Networks (NYSE: NT).

The firm pleased the Street last week, when it announced fiscal Q4 EPS of 36 cents and revenues of $9.43 billion. Analysts had been expecting 35 cents and $9.27 billion. Management also guided Q1 revenues to $9.45-$9.55 billion ($9.30B consensus) and raised long term revenue guidance to 13-16% from 10-15%. Nine brokerages subsequently termed the stock a "buy" and declared price targets of $35 to $38. The share price popped on the news and has since been consolidating the gain in a bullish "flag" pattern. Prices frequently exit flags moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.