Dogs of the Dow hang close to overall market

Cisco and Coca-Cola running break-even with the overall market

Both Cisco Systems (CSCO) and Coca-Cola (KO) are trading pretty even with the overall market. CSCO has appreciated 14.7% on the year, while our KO position is up 14.4%. Cisco has already made four dividend payments during the year, while Coca-Cola still has one more to make before end of year which will give the position a small boost. Coca-Cola is next scheduled to report quarterly results on October 25, and Cisco will not report again until November 15. Both stocks are trading near their 52-week highs, with KO just shy of an all-time high. KO has a high valuation, with a P/E of 49, which could limit its upside through the remainder of the year, while CSCO has a more reasonable P/E of 17.6. Wall Street is upbeat on both stocks, so as long as neither reports disappointing numbers in their upcoming quarterly reports the stocks should hold their recent gains or possible trend higher to overtake the overall Dow, but the upside on a positive report is greater for CSCO given its current valuation.

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Charts courtesy of www.stockcharts.com

Michael Fowlkes

Michael Fowlkes

Michael Fowlkes is a financial writer who has been with the Fresh Brewed Media family since 2004. Over the course of his tenure with Fresh Brewed Media, he has worn many hats, including portfolio manager, options analyst, and writer. Michael received his undergraduate degree from Virginia Tech in Accounting and got his start in finance working as a stock trader for six years at Chase Investment Counsel in Charlottesville, Va.

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