Cisco Drops 8% in 3 Months: Should You Buy the Stock on the Dip?

Cisco Systems CSCO shares have dropped 7.8% in the past three months, underperforming the broader Zacks Computer & Technology sector's fall of 2.6%. Cisco has underperformed peers, including Hewlett Packard Enterprise HPE and Arista Networks ANET, but outperformed Broadcom AVGO over the same time frame. Shares of Hewlett Packard Enterprise and Arista Networks have appreciated 28.8% and 17.6% over the past three months, respectively, while Broadcom has dropped 15.5%. The decline in CSCO appears to reflect concerns around margin pressure, the revenue mix, and the sustainability of the current networking upcycle. However, does the dip offer an opportunity to take a position in CSCO shares? Let's find out.