Cisco Vs. Arista: Which Networking Stock Is A Better Buy?

macro photography of black circuit board

The adoption of a hybrid working culture, increased demand for cybersecurity, and the commercial availability of 5G technology are driving the networking industry’s growth. Thus, popular networking stocks Cisco (CSCO) and Arista (ANET) are poised to deliver significant returns in the coming months. But let’s find out which of these stocks is a better buy now.

Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol (IP) based networking products and services related to the communications and information technology industry worldwide. Its offerings include infrastructure platforms, applications, security and other products.

Arista Networks, Inc. develops, markets, and sells cloud networking solutions that use software innovations to address the needs of Internet companies, cloud service providers and data centers for enterprise support. It also provides post-contract customer support services.

Because most businesses were forced to operate remotely during the worst of the COVID-19 pandemic, their increased adoption of cloud-based business solutions has allowed networking companies to grow significantly since the onset of the pandemic.

The growth of networking companies is expected to continue because many businesses are adopting hybrid-working models permanently. Furthermore, the heightened demand for cybersecurity and the emergence of 5G have been driving networking companies to develop innovative, secure and efficient solutions. The global network security market is expected to grow at a 12% CAGR over the next eight years to reach $60.38 billion by 2028. Consequently, both CSCO and ANET could see increasing demand for their products and services.

While CSCO has retreated marginally over the past month, ANET has surged 2.8%. But, in terms of their past six months’ performance, CSCO is a clear winner with 27.5% gains versus ANET’s 18.6% returns. But, which of these stocks is a better pick now? 

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