2 Top Tech Stocks In The Networking Industry

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Most tech stocks have gained significantly over the past year as demand for technology solutions increased with the broad adoption of work-from-home structures amid the COVID-19 pandemic. Given the increased connectivity required to facilitate remote organizational structures,  the network industry has been one of the major beneficiaries.

While some tech stocks have experienced a pullback lately due to investors’ rotation away from pricey tech stocks and into quality bargains and rising Treasury bond yields,  pandemic-driven trends — such as work-from-home — are likely to continue in the foreseeable future thereby helping technology stocks to continue outperforming the broader market.

The backdrop for networking companies is expected to remain favorable. In fact, the Network as a Service (NaaS) market is expected to grow at a CAGR of 34.5% over the next six years and the IT services global market is expected to grow at a CAGR of 11% over the next five years.

So, we think it wise to bet on top networking stocks Cisco Systems, Inc. (CSCO - Get Rating) and Aviat Networks, Inc. (AVNW - Get Rating).

Cisco Systems, Inc. (CSCO - Get Rating)

Based in San Jose, California, CSCO designs, manufactures and sells Internet Protocol (IP) based networking products and services related to the communications and information technology industry worldwide. The company operates through three geographic segments — Americas; Europe, Middle East, and Africa; and Asia Pacific, Japan, and China. CSCO’s offerings include infrastructure platforms, applications, security, and other products.

On March 1, 2021, CSCO completed the acquisition of Acacia Communications, Inc. (ACIA). The acquisition reinforces CSCO’s commitment to optics as a critical building block that is expected to enhance its ‘Internet for the Future’ strategy with world-class coherent optical solutions for customers. Also, CSCO  completed the acquisition of IMImobile PLC on February 19. IMImobile is a leading global provider of cloud communications software and services that manage business-critical interactions at scale.

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