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

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.

Growth Analysis 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:

• The Earnings Per Share has grown by an impressive 51.09% over the past year.
• Measured over the past years, ANET shows a very strong growth in Earnings Per Share. The EPS has been growing by 28.34% on average per year.
• Looking at the last year, ANET shows a very strong growth in Revenue. The Revenue has grown by 33.75%.
• ANET shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.19% yearly.
• 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.

Understanding NYSE:ANET's Health Score

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:ANET scores a 9 out of 10:

• ANET has an Altman-Z score of 20.48. This indicates that ANET is financially healthy and has little risk of bankruptcy at the moment.
• ANET has a Altman-Z score of 20.48. This is amongst the best in the industry. ANET outperforms 100.00% 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 4.39 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 87.04% of its industry peers.
• ANET has a Quick Ratio of 3.31. This indicates that ANET is financially healthy and has no problem in meeting its short term obligations.
• The Quick ratio of ANET (3.31) is better than 85.19% of its industry peers.

Profitability Examination for NYSE:ANET

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:

• With an excellent Return On Assets value of 20.98%, ANET belongs to the best of the industry, outperforming 98.15% of the companies in the same industry.
• With an excellent Return On Equity value of 28.91%, ANET belongs to the best of the industry, outperforming 94.44% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 24.11%, ANET belongs to the top of the industry, outperforming 96.30% 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 10.02%.
• The last Return On Invested Capital (24.11%) for ANET is above the 3 year average (21.73%), which is a sign of increasing profitability.
• The Profit Margin of ANET (35.62%) is better than 100.00% of its industry peers.
• ANET's Profit Margin has improved in the last couple of years.
• ANET has a better Operating Margin (38.52%) than 100.00% of its industry peers.
• In the last couple of years the Operating Margin of ANET has grown nicely.
• ANET has a better Gross Margin (61.95%) than 87.04% of its industry peers.

How do we evaluate the setup for NYSE:ANET?

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NYSE:ANET is 7:

ANET has only a medium technical rating, but it does show a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price. There is a support zone below the current price at 249.22, a Stop Loss order could be placed below this zone.

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

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

Check the latest full technical report of ANET for a complete technical analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.