How Pete Najarian Manages His Position In Cisco Systems

Morgan Stanley recently named Cisco Systems Inc CSCO a top second half idea for 2021. The analyst firm has an Outperform rating and a $57 price target on the stock.

Market Rebellion co-founder Pete Najarian said he loves the stock Tuesday on CNBC's "Fast Money Halftime Report."

It's a very stable company with good management, but it has underperformed others in the sector, Najarian said. "I create dividend yields" by selling calls against the stock on a weekly or monthly basis, he added. 

Related Link: Analyzing Cisco Systems's Unusual Options Activity

The stock is inexpensive based on its price-to-earnings ratio, Najarian said, adding that he isn't nervous about the stock's downside potential. Najarian said the stock to his portfolio about a month ago.

Price Action: Cisco has traded as high as $55.35 and as low as $35.28 over a 52-week period.

At last check Tuesday, the stock was down 1.80% at $52.57.

Photo: DennisM2 from Flickr.