Is ARISTA NETWORKS INC (NYSE:ANET) a Fit for Growth Investing Strategies?

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. Investors should of course do their own research, but we spotted ARISTA NETWORKS INC showing up in our CANSLIM growth screen, so it may be worth spending some more time on it.

What matters for canslim investors.

• In the most recent financial report, ANET reported a 25.0% increase in quarterly earnings compared to the previous quarter. This notable growth indicates positive momentum in the company's financials, suggesting an upward trend
• ANET has achieved 25.32% growth in its revenue over the previous quarter, signaling positive momentum in its financial performance and potential market opportunities.
• The 3-year EPS growth of ANET (46.94%) highlights the company's ability to consistently improve its earnings performance and suggests a positive outlook for future profitability.
• With a solid Return on Equity (ROE) of 28.54%, ANET exemplifies its ability to generate favorable returns on shareholder investments. This metric demonstrates the company's commitment to maximizing shareholder value.
• ANET has achieved an impressive Relative Strength (RS) rating of 77.31, showcasing its ability to outperform the broader market.
• ANET has a Debt/Equity ratio of 0.0, indicating a balanced approach to financing growth.
• ANET demonstrates a balanced ownership structure, with institutional shareholders at 68.57%. This indicates a diverse investor base, which can contribute to price stability and potential future growth.

Technical analysis of ANET

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

Taking everything into account, ANET scores 5 out of 10 in our technical rating. Although ANET has been one of the better performers in the overall market, we have a mixed picture in the medium term time frame. But recently some decent action can be observed again.

• The short term trend is positive, while the long term trend is neutral. So this is evolving in the right direction.
• In the last month ANET has a been trading in the 59.43 - 92.02 range, which is quite wide. It is currently trading near the high of this range.
• When comparing the yearly performance of all stocks, we notice that ANET is one of the better performing stocks in the market, outperforming 77% of all stocks. However, we also see that ANET couldn't keep up this performance in the last couple of months.
• ANET is an average performer in the Communications Equipment industry, it outperforms 58% of 49 stocks in the same industry.
• ANET is currently trading in the middle of its 52 week range. This is in line with the S&P500 Index, which is also trading in the middle of its range.
• Prices have been rising strongly lately, it may be a good idea to wait for a consolidation or pullback before considering an entry.

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

A complete fundamental analysis of ANET

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

Overall ANET gets a fundamental rating of 7 out of 10. We evaluated ANET against 49 industry peers in the Communications Equipment industry. ANET scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ANET shows excellent growth, but is valued quite expensive already. These ratings would make ANET suitable for growth and quality investing!

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

More growth stocks can be found in our CANSLIM screen.

Disclaimer

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.