Wednesday’s ETF To Watch: Technology-Multimedia Networking ETF (IGN, CSCO)

Share This Article
February 8, 2012 12:51pm NYSE:IGN

Jared Cummans: As earnings season comes to a close, investors have just a few more big name reports before another three month lull. So far, this most recent slew of earnings has been so-so, with a number of bellwether firms both meeting and missing their respective analyst targets. Many had hoped


that a strong earnings season would help offset some of the volatility overseas but it seems that we will have to wait until next quarter for another chance at that goal. For now, we focus on the remaining firms that report at the tail end  of this important stretch of the year [see also The Ten Commandments of Commodity Investing].

Today will see the second quarter earnings results from networking giant Cisco (NASDAQ:CSCO). The company is best known for their routers and other associated products that are utilized by businesses and individuals alike. Last year at this time, investors were still horrified that Cisco would report another drab quarter and send their share price tumbling. But it should be noted that the company has surpassed analyst expectations for four straight quarters now, and a win today would make it five. CSCO’s stock price has jumped 50% from its lows in August of last year [see also The Truth About Alternative Weighting Methodologies (And ETFs)].

Analysts are calling for for EPS of $0.43 as well as a revenue of $11.22 billion which would mark a nice jump of 8% from the same period last year. Also important in every Cisco announcement is their forecast; the company is well known for forecasting the coming quarter and analysts now have estimates for how the forecast will look. For the first full quarter of 2012, analysts feel that Cisco will predict EPS of $0.45 with a jump in revenues to $11.46 billion.

In light of this major announcement, today’s ETF to watch will be the S&P North American Technology-Multimedia Networking Index Fund (NYSE:IGN). This ETF measures the performance of U.S.-traded multimedia networking stocks and has over $212 million in assets. Cisco comes with a 8.4% weighting in the fund; while it is technically ranked fifth in overall holdings, consider that the top holding takes home an allocation of only 8.6%. It should be noted that Cisco will report after market close today, but for investors who want to make a play on this report, today will be the day to establish a position [see also Fund Managers Turn Bullish As “Risk Appetite” Increases].

Written By Jared Cummans From ETF Database Disclosure: No positions at time of writing.

ETF Database is committed to giving our audience, consisting of both active traders and buy-and-hold investors, information that, to our knowledge,  is truthful and non-biased. [For more ETF insights, sign up for our free ETF newsletter or try a free seven day trial of ETFdb ProETFdb Pro Members Only.]

 


7 "SAFE HAVEN" Dividend Stocks for Turbulent Times

Read Next



Free Investing Ideas Newsletter!

Join over 70,000 investors who get the latest insights and top rated picks from our free investment newsletter.

Most Popular



9 Buy the Dip Growth Stocks

Explore More from ETFDailyNews.com

Free Investment Newsletter

Join over 70,000 investors who get the latest insights and top rated picks from our free investment newsletter.

ETFDailyNews.com respects your privacy.

Best ETFs

We've rated and ranked nearly 2,000 ETFs and ETNs using our proprietary SMART Grade system.

View Top Rated ETFs

Best Categories

We've ranked dozens of ETF categories based on relative performance.

Best ETF Categories