Why NYSE:ANET Is a Promising High-Growth Stock in the Midst of Consolidation.

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether ARISTA NETWORKS INC (NYSE:ANET) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but ARISTA NETWORKS INC has surfaced on our radar for growth with base formation, warranting further examination.

Assessing Growth for NYSE:ANET

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:ANET has earned a 8 for growth:

• ANET shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 51.09%, which is quite impressive.
• ANET shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 28.34% yearly.
• The Revenue has grown by 33.75% in the past year. This is a very strong growth!
• The Revenue has been growing by 22.19% on average over the past years. This is a very strong growth!
• ANET is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.46% yearly.
• ANET is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.36% yearly.

Health Insights: 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 20.75 indicates that ANET is not in any danger for bankruptcy at the moment.
• ANET's Altman-Z score of 20.75 is amongst the best of the industry. ANET outperforms 100.00% of its industry peers.
• ANET has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
• A Current Ratio of 4.39 indicates that ANET has no problem at all paying its short term obligations.
• ANET has a Current ratio of 4.39. This is amongst the best in the industry. ANET outperforms 83.93% of its industry peers.
• A Quick Ratio of 3.31 indicates that ANET has no problem at all paying its short term obligations.
• ANET's Quick ratio of 3.31 is amongst the best of the industry. ANET outperforms 83.93% of its industry peers.

Understanding NYSE:ANET's Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:ANET has achieved a 9:

• ANET has a better Return On Assets (20.98%) than 96.43% of its industry peers.
• ANET has a better Return On Equity (28.91%) than 92.86% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 24.11%, ANET belongs to the top of the industry, outperforming 96.43% of the companies in the same industry.
• ANET had an Average Return On Invested Capital over the past 3 years of 21.73%. This is significantly above the industry average of 10.10%.
• The 3 year average ROIC (21.73%) for ANET is below the current ROIC(24.11%), indicating increased profibility in the last year.
• ANET has a better Profit Margin (35.62%) than 98.21% of its industry peers.
• In the last couple of years the Profit Margin of ANET has grown nicely.
• The Operating Margin of ANET (38.52%) is better than 100.00% of its industry peers.
• ANET's Operating Margin has improved in the last couple of years.
• ANET has a better Gross Margin (61.95%) than 87.50% of its industry peers.

How does the Setup look 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:

ANET has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price.

More Strong Growth stocks can be found in our Strong Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of ANET

For an up to date full technical analysis you can check the technical report of ANET

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.