Cisco Systems (NASDAQ: CSCO ) announces 2Q16 earnings Wednesday, 2/10, after the market closes. We like CSCO heading into those earnings as an attractive valuation, and cash-heavy balance sheet coupled with beatable estimates gives us conviction in post-earnings share price appreciation. While our bullish stance is tempered by an influx of low-cost, white-label equipment cutting into gross margins, we do believe the company is large enough, reputable enough, and diversified enough to warrant a richer valuation than the market is awarding it. There exists a very real threat of white-label equipment. As cloud computing giants like Microsoft (NASDAQ: MSFT ) and Amazon (NASDAQ: AMZN ) turn toward low-cost, white-label equipment, CSCO's hardware business comes at-risk because MSFT and AMZN's cloud service growth implies CSCO's hardware customer churn.