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JBL vs. ANET: Which Tech Stock Offers More Upside in AI Networking?
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Key Takeaways
Jabil expects 2025 sales and EPS to rise 5.1% and 13.3%, supported by AI and automation demand.
Arista projects 2025 sales and EPS to grow 25.4% and 23.8%, driven by AI networking momentum.
JBL trades at 17.7 forward earnings versus ANET's 47.2, yet ANET's AI exposure gives it the edge.
Jabil Inc. (JBL - Free Report) and Arista Networks, Inc. (ANET - Free Report) are two leading players in the technology manufacturing industry. Jabil is one of the largest global suppliers of electronics manufacturing services (EMS) solutions. The company offers electronics design, production, product management and after-market services to customers in the aerospace, automotive, computing, consumer, defense, industrial, instrumentation, medical, networking, peripherals, storage and telecommunications industries.
On the other hand, Arista offers one of the broadest product lines of data center and campus Ethernet switches and routers in the industry. It provides routing and switching platforms with industry-leading capacity, low latency, port density and power efficiency.
With domain-specific expertise in core areas, both Jabil and Arista are strategically positioned in the tech-adjacent manufacturing landscape and have the means to cater to the evolving demands of business enterprises and artificial intelligence/machine learning (AI/ML) technology. Let us delve a little deeper into the companies’ competitive dynamics to understand which of the two is relatively better placed in the industry.
The Case for JBL
With a presence across 100 locations in 30 countries, Jabil is likely to gain from secular growth drivers with strong margins and cash flow dynamics. Moreover, its unmatched end-market experience, technical and design capabilities, manufacturing know-how, supply-chain insights and global product management expertise have put it in good stead.
Management’s focus on improving working capital management and integrating sophisticated AI and ML capabilities to enhance the efficiency of its internal processes is a major tailwind. Jabil’s top line is expected to benefit from strength in AI data center infrastructure, capital equipment and warehouse automation markets. The company is likely to gain from the rapid adoption of 5G wireless and cloud computing in the long run. It is benefiting from solid demand in key end markets, together with excellent operational execution and skillful management of supply-chain dynamics.
However, Jabil operates in a highly competitive environment, facing competition from both domestic and international electronic manufacturers, manufacturing service providers and designers like Sanmina Corporation (SANM - Free Report) . The tense geopolitical situation between the United States and China, and the wars in Europe and the Middle East remain headwinds. Against the backdrop of this global uncertainty, low demand in some consumer-centric markets is negatively impacting its margins.
The Case for ANET
Arista holds a leadership position in 100-gigabit Ethernet switches and is increasingly gaining market traction in 200- and 400-gigabit high-performance switching products. The Arista 2.0 strategy is resonating well with customers, as its modern networking platforms are foundational for the transformation from silos to data centers. The company boasts a comprehensive portfolio with the right network architecture for client-to-campus data center cloud and AI networking, backed by three guiding principles. These include best-in-class, highly proactive products with resilience, zero-touch automation and telemetry with predictive client-to-cloud one-click operations with granular visibility and prescriptive insights for deeper AI algorithms.
The Arista 2.0 strategy includes three components that are likely to drive growth over the next few years. The first component involves focused plans to invest in core businesses by rolling out new solutions and improved AI offerings. Secondly, Arista aims to emphasize more on software-as-a-service for improved revenue visibility. Last but not least, the company plans to enter adjacent markets to target a broader customer base.
However, Arista remains plagued by high operating costs. Total operating expenses in second-quarter 2025 increased around 13.8% to $452.4 million, owing to a rise in headcount, new product introduction costs and higher variable compensation expenditures. Moreover, the redesigning of products and their supply chain mechanism has eroded margins. Although the company is witnessing increased demand, there are lingering supply bottlenecks for advanced products. Therefore, it is increasing orders for these components and trying to build up inventory, which is blocking working capital.
How Do Estimates Compare for JBL & ANET?
The Zacks Consensus Estimate for Jabil’s 2025 sales and EPS implies year-over-year growth of 5.1% and 13.3%, respectively. However, the EPS estimates have remained static over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Arista’s 2025 sales and EPS indicates year-over-year increases of 25.4% and 23.8%, respectively. The EPS estimates for ANET have also remained unchanged over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of JBL & ANET
Over the past year, Jabil has surged 60.8% compared with the industry’s growth of 105.4%. Arista has gained 50.3% over the same period.
Image Source: Zacks Investment Research
Jabil looks more attractive than Arista from a valuation standpoint. Going by the price/earnings ratio, JBL shares currently trade at 17.7 forward earnings, lower than 47.2 for ANET.
Both Arista and Jabil expect sales and profits to improve in 2025, although the former’s growth expectations far exceed those of the latter. Jabil boasts a better price performance, and its valuation metrics appear comparatively more attractive. However, Arista appears to have a slight edge with concentrated exposure to data-center & AI networking and high operating leverage. Consequently, ANET seems to be a better investment option at the moment.
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JBL vs. ANET: Which Tech Stock Offers More Upside in AI Networking?
Key Takeaways
Jabil Inc. (JBL - Free Report) and Arista Networks, Inc. (ANET - Free Report) are two leading players in the technology manufacturing industry. Jabil is one of the largest global suppliers of electronics manufacturing services (EMS) solutions. The company offers electronics design, production, product management and after-market services to customers in the aerospace, automotive, computing, consumer, defense, industrial, instrumentation, medical, networking, peripherals, storage and telecommunications industries.
On the other hand, Arista offers one of the broadest product lines of data center and campus Ethernet switches and routers in the industry. It provides routing and switching platforms with industry-leading capacity, low latency, port density and power efficiency.
With domain-specific expertise in core areas, both Jabil and Arista are strategically positioned in the tech-adjacent manufacturing landscape and have the means to cater to the evolving demands of business enterprises and artificial intelligence/machine learning (AI/ML) technology. Let us delve a little deeper into the companies’ competitive dynamics to understand which of the two is relatively better placed in the industry.
The Case for JBL
With a presence across 100 locations in 30 countries, Jabil is likely to gain from secular growth drivers with strong margins and cash flow dynamics. Moreover, its unmatched end-market experience, technical and design capabilities, manufacturing know-how, supply-chain insights and global product management expertise have put it in good stead.
Management’s focus on improving working capital management and integrating sophisticated AI and ML capabilities to enhance the efficiency of its internal processes is a major tailwind. Jabil’s top line is expected to benefit from strength in AI data center infrastructure, capital equipment and warehouse automation markets. The company is likely to gain from the rapid adoption of 5G wireless and cloud computing in the long run. It is benefiting from solid demand in key end markets, together with excellent operational execution and skillful management of supply-chain dynamics.
However, Jabil operates in a highly competitive environment, facing competition from both domestic and international electronic manufacturers, manufacturing service providers and designers like Sanmina Corporation (SANM - Free Report) . The tense geopolitical situation between the United States and China, and the wars in Europe and the Middle East remain headwinds. Against the backdrop of this global uncertainty, low demand in some consumer-centric markets is negatively impacting its margins.
The Case for ANET
Arista holds a leadership position in 100-gigabit Ethernet switches and is increasingly gaining market traction in 200- and 400-gigabit high-performance switching products. The Arista 2.0 strategy is resonating well with customers, as its modern networking platforms are foundational for the transformation from silos to data centers. The company boasts a comprehensive portfolio with the right network architecture for client-to-campus data center cloud and AI networking, backed by three guiding principles. These include best-in-class, highly proactive products with resilience, zero-touch automation and telemetry with predictive client-to-cloud one-click operations with granular visibility and prescriptive insights for deeper AI algorithms.
The Arista 2.0 strategy includes three components that are likely to drive growth over the next few years. The first component involves focused plans to invest in core businesses by rolling out new solutions and improved AI offerings. Secondly, Arista aims to emphasize more on software-as-a-service for improved revenue visibility. Last but not least, the company plans to enter adjacent markets to target a broader customer base.
However, Arista remains plagued by high operating costs. Total operating expenses in second-quarter 2025 increased around 13.8% to $452.4 million, owing to a rise in headcount, new product introduction costs and higher variable compensation expenditures. Moreover, the redesigning of products and their supply chain mechanism has eroded margins. Although the company is witnessing increased demand, there are lingering supply bottlenecks for advanced products. Therefore, it is increasing orders for these components and trying to build up inventory, which is blocking working capital.
How Do Estimates Compare for JBL & ANET?
The Zacks Consensus Estimate for Jabil’s 2025 sales and EPS implies year-over-year growth of 5.1% and 13.3%, respectively. However, the EPS estimates have remained static over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Arista’s 2025 sales and EPS indicates year-over-year increases of 25.4% and 23.8%, respectively. The EPS estimates for ANET have also remained unchanged over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of JBL & ANET
Over the past year, Jabil has surged 60.8% compared with the industry’s growth of 105.4%. Arista has gained 50.3% over the same period.
Image Source: Zacks Investment Research
Jabil looks more attractive than Arista from a valuation standpoint. Going by the price/earnings ratio, JBL shares currently trade at 17.7 forward earnings, lower than 47.2 for ANET.
Image Source: Zacks Investment Research
JBL or ANET: Which is a Better Pick?
Both Jabil and Arista carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Both Arista and Jabil expect sales and profits to improve in 2025, although the former’s growth expectations far exceed those of the latter. Jabil boasts a better price performance, and its valuation metrics appear comparatively more attractive. However, Arista appears to have a slight edge with concentrated exposure to data-center & AI networking and high operating leverage. Consequently, ANET seems to be a better investment option at the moment.