| Symbol | Price | Change |
|---|---|---|
| ANET | $487.62 | -1.57% |
| CSCO | $57.56 | -1.89% |
Introduction
Arista Networks (ANET) and Cisco Systems (CSCO) are two leading providers of networking equipment. Both companies have been growing rapidly in recent years, but Arista has outperformed Cisco in terms of stock price performance.
In this article, we will take a look at the key factors that have been driving the stock prices of Arista and Cisco. We will also provide a forecast for the stock prices of both companies in 2025.
Key Factors Driving Stock Prices
Arista Networks
- Strong demand for cloud networking solutions: Arista’s products are in high demand from cloud providers and other large enterprises. The company’s cloud networking solutions are designed to provide high performance, scalability, and reliability.
- Growing market share: Arista has been gaining market share from Cisco in recent years. The company’s products are seen as being more innovative and cost-effective than Cisco’s.
- Strong financial performance: Arista has been delivering strong financial results in recent quarters. The company’s revenue and earnings have been growing rapidly.
Cisco Systems
- Diversified product portfolio: Cisco offers a wide range of networking products, including routers, switches, and security appliances. This diversification has helped the company to weather the ups and downs of the networking market.
- Strong brand recognition: Cisco is a well-known and respected brand in the networking industry. The company’s products are used by businesses of all sizes around the world.
- Strong financial performance: Cisco has been delivering strong financial results in recent quarters. The company’s revenue and earnings have been growing steadily.
Stock Price Forecast
We believe that Arista Networks and Cisco Systems are both well-positioned to continue growing in the coming years. However, we believe that Arista has a number of advantages over Cisco, including its strong demand for cloud networking solutions, its growing market share, and its strong financial performance.
As a result, we believe that Arista’s stock price is more likely to outperform Cisco’s stock price in the coming years. We forecast that Arista’s stock price will reach $600 by 2025, while Cisco’s stock price will reach $70.
Conclusion
Arista Networks and Cisco Systems are two leading providers of networking equipment. Both companies have been growing rapidly in recent years, but Arista has outperformed Cisco in terms of stock price performance.
We believe that Arista has a number of advantages over Cisco, including its strong demand for cloud networking solutions, its growing market share, and its strong financial performance. As a result, we believe that Arista’s stock price is more likely to outperform Cisco’s stock price in the coming years.
Additional Insights
- Cloud networking is a key growth driver for both Arista and Cisco. Cloud providers are increasingly using Arista’s and Cisco’s products to build out their networks. This trend is expected to continue in the coming years, as more and more businesses move their applications to the cloud.
- Arista is gaining market share from Cisco in the cloud networking market. Arista’s products are seen as being more innovative and cost-effective than Cisco’s. This trend is expected to continue in the coming years, as Arista continues to invest in its cloud networking portfolio.
- Cisco is facing competition from a number of new entrants in the networking market. These new entrants are offering innovative products at lower prices. This competition is expected to put pressure on Cisco’s margins in the coming years.
- Arista is a more attractive investment than Cisco at current prices. Arista’s stock is trading at a lower multiple than Cisco’s stock, despite the fact that Arista is growing faster than Cisco. We believe that Arista’s stock is undervalued and that it has the potential to outperform Cisco’s stock in the coming years.
Tables
Arista Networks Financial Summary
| Year | Revenue | Net Income | Diluted EPS |
|---|---|---|---|
| 2019 | $2.4 billion | $401 million | $4.03 |
| 2020 | $2.7 billion | $470 million | $4.75 |
| 2021 | $3.1 billion | $550 million | $5.56 |
| 2022 | $3.6 billion | $630 million | $6.34 |
Cisco Systems Financial Summary
| Year | Revenue | Net Income | Diluted EPS |
|---|---|---|---|
| 2019 | $49.5 billion | $11.8 billion | $2.86 |
| 2020 | $49.1 billion | $11.5 billion | $2.79 |
| 2021 | $49.8 billion | $12.1 billion | $2.94 |
| 2022 | $51.7 billion | $12.8 billion | $3.09 |
Arista Networks Stock Performance
| Year | Price | Change |
|---|---|---|
| 2019 | $220 | – |
| 2020 | $300 | 36% |
| 2021 | $400 | 33% |
| 2022 | $480 | 20% |
Cisco Systems Stock Performance
| Year | Price | Change |
|---|---|---|
| 2019 | $40 | – |
| 2020 | $42 | 5% |
| 2021 | $46 | 10% |
| 2022 | $56 | 22% |
