Special attention on this upcoming week when both Cisco and NetApp release their earnings. These companies have been performing beyond analyst expectations quarter after quarter and we feel that 2Q results will not be disappointing. These two companies offer much of the technological "infrastructure" that is needed for growing and expanding economies such as BRIC and EMEA nations with particular emphasis on increased demands from China and African nations.
This quarter we are expecting increased revenues from both companies. For Cisco, revenues from governments around the world are going to boost sales, and although we can acknowledge that Cisco has more competitors now than it ever has, its established reliability is worth the price for customers. Another attractive aspect is Cisco's relatively low P/E ratio.
NetApp has been growing in market share modestly over the past few years. This quarter we expect increased revenues and lower expenses. While Oracle and EMC are challenging competitors, truly the demand for these services have increased and all companies will experience growth. When it comes to data management, NetApp has established itself among the competitors and offers unique product differentiation.
Suggestion: Buy CSCO, Buy NTAP
-Renner
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