Is Cisco Systems (CSCO) becoming a value stock?

u/EnoughInitiative9074 · Reddit — r/dividends · January 21, 2026 at 16:32 · ⬆ 3 pts · 💬 4 comments  | View on Reddit ↗
AI Summary

Original Reddit post

Author argues Cisco is becoming a value stock, citing its shift to recurring subscription/software revenue, strong financials, 2.24% dividend, switching-cost moat, and Fortune 500 customer base, while continuing to buy shares.

CSCO — LONG The author is buying and will continue to buy Cisco, arguing it has become a value stock trading at a PE of 28, lower than higher-growth peers like Broadcom. The core mechanism is Cisco's shift from hardware to a recurring subscription and software revenue model, which the author believes positions the company well. Supporting factors cited are good financials, a 2.24% dividend with growth potential, a switching-cost moat, and a Fortune 500 customer base. The author explicitly asks what they might be missing, implying uncertainty about the thesis.

I want to say I have and will continue to buy Cisco stock. Cisco was one of the many companies that got hit hard by the dot.com crash. But more recently Cisco have became more of a value stock with its Pe 28 which is high but lower than the “higher growth”peers such as Broadcom.

Score 3
Comments 4
Full Post Text
Ideas
u/EnoughInitiative9074 Reddit r/dividends
Cisco value stock on recurring revenue shift
The author is buying and will continue to buy Cisco, arguing it has become a value stock trading at a PE of 28, lower than higher-growth peers like Broadcom. The core mechanism is Cisco's shift from hardware to a recurring subscription and software revenue model, which the author believes positions the company well. Supporting factors cited are good financials, a 2.24% dividend with growth potential, a switching-cost moat, and a Fortune 500 customer base. The author explicitly asks what they might be missing, implying uncertainty about the thesis.
More from Reddit — r/dividends

This Reddit post, published January 21, 2026, features u/EnoughInitiative9074 discussing CSCO. 1 trade idea extracted by AI with direction and confidence scoring.

Speakers: u/EnoughInitiative9074  · Tickers: CSCO