Are Cisco Shares Too Cheap to Ignore?

Shares of the networking giant have tumbled over concerns that a weakening economy may dampen the company's growth. Likely, Wall Street has overreacted.

You probably wouldn't consider a tech stock a good buy in a bear market and slumping economy. But it's hard to pass up a big, brand-name company that, on key measures of value, is about as cheap as it's ever been.

Cisco Systems is the type of company investors should gravitate toward during an economic slowdown. Cisco (symbol CSCO) is huge, highly profitable and has a manageable amount of debt. But the stock of the leading network-equipment maker has tumbled 32% since November 7 amid concerns that Cisco may be more vulnerable to a recession than many analysts had believed.

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Cameron Huddleston
Former Online Editor,

Award-winning journalist, speaker, family finance expert, and author of Mom and Dad, We Need to Talk.

Cameron Huddleston wrote the daily "Kip Tips" column for She joined Kiplinger in 2001 after graduating from American University with an MA in economic journalism.