NYSE:ANET, a strong growth stock, setting up for a breakout.

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if ARISTA NETWORKS INC (NYSE:ANET) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted ARISTA NETWORKS INC showing up in our growth with base formation screen, so it may be worth spending some more time on it.

Evaluating Growth: NYSE:ANET

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:ANET scores a 8 out of 10:

• The Earnings Per Share has grown by an impressive 37.12% over the past year.
• ANET shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 28.34% yearly.
• Looking at the last year, ANET shows a quite strong growth in Revenue. The Revenue has grown by 18.19% in the last year.
• The Revenue has been growing by 22.19% on average over the past years. This is a very strong growth!
• Based on estimates for the next years, ANET will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.81% on average per year.
• Based on estimates for the next years, ANET will show a quite strong growth in Revenue. The Revenue will grow by 17.90% on average per year.

A Closer Look at Health for NYSE:ANET

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:ANET has received a 9 out of 10:

• ANET has an Altman-Z score of 26.16. This indicates that ANET is financially healthy and has little risk of bankruptcy at the moment.
• ANET has a better Altman-Z score (26.16) than 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.
• ANET has a Current Ratio of 4.47. This indicates that ANET is financially healthy and has no problem in meeting its short term obligations.
• With an excellent Current ratio value of 4.47, ANET belongs to the best of the industry, outperforming 84.31% of the companies in the same industry.
• ANET has a Quick Ratio of 3.69. This indicates that ANET is financially healthy and has no problem in meeting its short term obligations.
• The Quick ratio of ANET (3.69) is better than 88.24% of its industry peers.

Exploring NYSE:ANET's Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:ANET has earned a 9 out of 10:

• Looking at the Return On Assets, with a value of 20.74%, ANET belongs to the top of the industry, outperforming 98.04% of the companies in the same industry.
• ANET has a Return On Equity of 28.82%. This is amongst the best in the industry. ANET outperforms 96.08% of its industry peers.
• The Return On Invested Capital of ANET (22.96%) is better than 94.12% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for ANET is significantly above the industry average of 11.02%.
• The last Return On Invested Capital (22.96%) for ANET is above the 3 year average (21.73%), which is a sign of increasing profitability.
• With an excellent Profit Margin value of 40.29%, ANET belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
• ANET's Profit Margin has improved in the last couple of years.
• Looking at the Operating Margin, with a value of 42.11%, ANET belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
• In the last couple of years the Operating Margin of ANET has grown nicely.
• With an excellent Gross Margin value of 64.41%, ANET belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.

How do we evaluate the setup for NYSE:ANET?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:ANET this score is currently 8:

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

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.

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

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.