Arista (ANET) Offers Edge as a Service With the Launch of CUE
Arista Networks, Inc. ANET recently launched Cognitive Unified Edge (CUE) to help business enterprises be more flexible and agile. This "edge as a service" cloud-managed solution, which is equipped with edge threat management components, will also enable commercial customers to enjoy end-to-end protection from cyber risks.
The CUE solution has built-in zero-touch automation features with improved visibility and security options. It helps to reduce network complexity and lowers costs through an integrated network management platform. Moreover, fast problem identification, mediation, resolution and protection from increasing cyber threats owing to a unified edge threat management across devices will likely accelerate networking functions while fortifying security measures.
Arista’s CUE portfolio comprises CloudVision CUE management that offers full cloud-managed visibility of all edge infrastructure in a single window for troubleshooting and monitoring and Secure Edge feature, which enables proactive threat management from cyber risks. In addition, it offers integrated WAN connectivity to optimize existing Internet infrastructure and prioritize business-critical applications for higher employee productivity and cognitive Wi-Fi access points with support for wireless intrusion protection and location-based services.
Arista continues benefiting from the expanding cloud networking market, driven by strong demand for scalable infrastructure. In addition to high capacity and easy availability, its cloud networking solutions promise predictable performance and programmability that enable integration with third-party applications for network management, automation and orchestration. The company’s product portfolio facilitates the implementation of high-performance, highly scalable and appropriate solutions for every environment. It offers one of the broadest product lines of datacenter and campus 1/2.5/5/10/25/40/50/100/400 Gigabit Ethernet switches and routers in the industry. Arista provides routing and switching platforms with industry-leading capacity, low latency, port density and power efficiency. The company also continues to innovate in areas such as deep packet buffers, embedded optics and reversible cooling.
Arista’s strategy of leveraging merchant silicon from multiple suppliers has expanded its product portfolio and increased its ability to offer products at lower prices. This has also helped it focus on developing software like EOS and CloudVision. While EOS is core to the company’s cloud networking solutions for next-generation data centers and cloud networks, CloudVision is a network-wide approach for workload orchestration, workflow automation and real-time telemetry as a turnkey solution for cloud networking. Arista is well-positioned to benefit from strong demand for its data center switches. Continued spending on IT infrastructure products (server, enterprise storage and Ethernet switches) for deployment in cloud environments is likely to benefit the company. Its switches and routers support the high-end cloud networking market that requires fast throughput at low cost.
The stock has gained 86.5% over the past year compared with the industry’s rise of 8%.
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We remain impressed with the inherent growth potential of this Zacks Rank #2 (Buy) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Viavi Solutions Inc. VIAV, carrying a Zacks Rank #2, is another solid pick for investors in the industry. It delivered a modest earnings surprise of 15.6%, on average, in the trailing four quarters. Earnings estimates for the current year for the stock have moved up 10.8% since March 2021, while that for the next year is up 9.2%.
Viavi boasts a comprehensive product portfolio that offers end-to-end network visibility and analytics that help build, test, certify, maintain and optimize complex physical and virtual networks. Its wireless and fiber test solutions are in the early stages of a multi-year investment cycle fueled by the transition of OEMs and service providers to superfast 5G networks. Viavi expects growth to be driven by the secular demand for 5G wireless, fiber and 3D sensing.
TESSCO Technologies Incorporated TESS, carries a Zacks Rank #2. It delivered an earnings surprise of 55.4%, on average, in the trailing four quarters.
Earnings estimates for TESSCO for the current year have moved up 28.8% since March 2021. It offers products to the industry’s top manufacturers in mobile communications, Wi-Fi, wireless backhaul and related products. With over three decades of profound experience, TESSCO delivers complete end-to-end solutions to the wireless industry.
KVH Industries, Inc. KVHI, a Zacks Rank #2 stock, delivered an earnings surprise of 20%, on average, in the trailing four quarters.
Despite global supply chain disruptions, KVH Industries is driving growth and margin expansion through new product introduction and subscriber migration to High-Throughput Satellites. The company aims to make decisive inroads into the still-nascent autonomous transportation markets with a strong balance sheet position and zero debt. If KVH Industries manages to effectively mitigate supply chain woes, there could be further room for cash flow expansion.
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