Cisco Systems (NASDAQ:CSCO): Cisco’s core business of switching and routing offer very little growth or future upside. For that very reason, Cisco is shifting toward high-growth markets including cloud security, data centers and mobile. The company is one of the biggest players in security, garnering over 15% of the market. Mobile and data centers are performing just as well and will continue to be a big component of future growth. Unfortunately, having a hand in so many different markets leaves Cisco exposed to increased competition.
L Brands (NYSE:LB): L Brands’ focus on cost cutting, inventory management, strong product mix and boosting online sales are what will carry future growth. This is generally the same story found with most retailers. However, the company’s industry lead makes it far more likely that they can leverage these initiatives into sales. Its innovative prowess and exclusive assortments is what will really separate them from the competition. The biggest problems L Brands faces come from the need to offer more frequent discounts to push inventory and foreign currency headwinds. These may weigh on margins for the quarter to be reported.
NetApp (NASDAQ:NTAP): Revenue has been one of the biggest concerns for NetApp these last few quarters. In 3 of the last 4 reports, sales have contracted by double digits, a testament to the company’s weak products. Future refreshes, launches and more stringent cost controls will help drive revenue and margins in the coming quarters. In the meantime, the company appears to be on its way to another weak report. Shares are down about 8% in the past 12 months and 22.5% year to date.