From Nasdaq: 2025-05-26 11:30:00

Arista Networks Inc. (ANET) and Hewlett Packard Enterprise (HPE) are key players in the global networking industry, offering cloud networking solutions and a broad portfolio of networking products, respectively. Both companies are well-positioned in the market, but face competition and challenges in the evolving industry landscape.

HPE is focusing on expanding its networking business with Aruba Networking solutions and aims to acquire Juniper Networks Inc. in 2024 to enhance its offerings. However, the merger faces opposition from the U.S. Department of Justice due to antitrust concerns, potentially impacting market competition and customer options.

Arista Networks stands out with its innovative solutions for data center and cloud networking, offering a wide range of Ethernet switches and routers. The company’s strong financials and cash flow indicate efficient operations and growth potential, despite facing competition from industry giants like Cisco, Dell, and HPE in the networking market.

Zacks estimates show positive growth projections for both ANET and HPE, with Arista expected to see higher sales and EPS growth in 2025. However, HPE’s valuation and price performance make it a more attractive option compared to Arista, despite facing challenges in the networking space.

In terms of investment potential, Arista Networks (ANET) holds a Zacks Rank #2 (Buy) while Hewlett Packard Enterprise (HPE) carries a Zacks Rank #4 (Sell). Arista’s strong position in the Data Center and Cloud Networking market, coupled with its focus on innovation and customer satisfaction, makes it a more promising investment choice at present.



Read more at Nasdaq: ANET vs. HPE: Which Networking Stock is a Smart Investment Now?