Cisco's (CSCO) Barron's Bounce Continues

Shares of beaten-up tech bellwether Cisco (Nasdaq: CSCO) saw a rare jump yesterday, following a front page Barron's story highlighting the company as a buying opportunity. Today, that upside action continues.

After rising 2.4 percent yesterday, shares are up another 1.5 percent today.

In the weekend article entitled "Why Cisco Will Get Moving Again", Barron's argued that unlike in May 2000, when they wrote that the stock was overvalued trading at a nearly $500 billion market cap and a 130x the consensus, the stock is now sharply undervalued with shares trading at about 12x this year's consensus.

"Investors, making the opposite error they made in 2000, have priced in too much skepticism about Cisco's growth prospects and market-share position, making the stock an attractive opportunity for patient buyers," the article stated.

If Cisco comes close to its long-term objects of 12-17% annualized revenue growth, the stock should at least trade back to its 2010 high above $27, Barron's said.