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NYSE:ANET—Positioned as a High-Growth Stock, Ready for a Potential Breakout.

By Mill Chart

Last update: Nov 22, 2023

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether ARISTA NETWORKS INC (NYSE:ANET) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but ARISTA NETWORKS INC has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

How We Gauge Growth for NYSE:ANET

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:ANET boasts a 8 out of 10:

  • ANET shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 56.64%, which is quite impressive.
  • Measured over the past years, ANET shows a very strong growth in Earnings Per Share. The EPS has been growing by 26.75% on average per year.
  • ANET shows a strong growth in Revenue. In the last year, the Revenue has grown by 42.36%.
  • ANET shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.63% yearly.
  • Based on estimates for the next years, ANET will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.71% on average per year.
  • The Revenue is expected to grow by 13.39% on average over the next years. This is quite good.

Evaluating Health: NYSE:ANET

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:ANET was assigned a score of 9 for health:

  • An Altman-Z score of 18.52 indicates that ANET is not in any danger for bankruptcy at the moment.
  • ANET has a better Altman-Z score (18.52) than 98.33% of its industry peers.
  • There is no outstanding debt for ANET. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
  • A Current Ratio of 4.15 indicates that ANET has no problem at all paying its short term obligations.
  • Looking at the Current ratio, with a value of 4.15, ANET belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
  • A Quick Ratio of 3.01 indicates that ANET has no problem at all paying its short term obligations.
  • Looking at the Quick ratio, with a value of 3.01, ANET belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.

Understanding NYSE:ANET's Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:ANET, the assigned 9 is a significant indicator of profitability:

  • ANET has a Return On Assets of 20.96%. This is amongst the best in the industry. ANET outperforms 96.67% of its industry peers.
  • The Return On Equity of ANET (29.22%) is better than 95.00% of its industry peers.
  • The Return On Invested Capital of ANET (25.40%) is better than 96.67% of its industry peers.
  • ANET had an Average Return On Invested Capital over the past 3 years of 19.19%. This is significantly above the industry average of 10.93%.
  • The last Return On Invested Capital (25.40%) for ANET is above the 3 year average (19.19%), which is a sign of increasing profitability.
  • Looking at the Profit Margin, with a value of 33.97%, ANET belongs to the top of the industry, outperforming 98.33% of the companies in the same industry.
  • In the last couple of years the Profit Margin of ANET has grown nicely.
  • ANET has a Operating Margin of 37.29%. This is amongst the best in the industry. ANET outperforms 100.00% of its industry peers.
  • In the last couple of years the Operating Margin of ANET has grown nicely.
  • ANET's Gross Margin of 60.76% is amongst the best of the industry. ANET outperforms 86.67% of its industry peers.

How do we evaluate the setup for NYSE:ANET?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NYSE:ANET scores a 7 out of 10:

Besides having an excellent technical rating, ANET also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 215.33. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 206.83, a Stop Loss order could be placed below this zone.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

Our latest full fundamental report of ANET contains the most current fundamental analsysis.

Our latest full technical report of ANET contains the most current technical analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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ARISTA NETWORKS INC

NYSE:ANET (2/23/2024, 7:04:00 PM)

After market: 267.5 -0.16 (-0.06%)

267.66

-1.1 (-0.41%)

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