ARISTA NETWORKS INC (NYSE:ANET) qualifies as a high growth stock and is consolidating.

In this article we will dive into ARISTA NETWORKS INC (NYSE:ANET) as a possible candidate for growth investing. Investors should always do their own research, but we noticed ARISTA NETWORKS INC showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

Growth Assessment of 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. ANET scores a 8 out of 10:

• The Earnings Per Share has grown by an impressive 29.68% 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 30.17% on average per year.
• Looking at the last year, ANET shows a very strong growth in Revenue. The Revenue has grown by 22.31%.
• ANET shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.77% yearly.
• Based on estimates for the next years, ANET will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.79% on average per year.
• ANET is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.53% yearly.

Assessing Health for 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. ANET has received a 9 out of 10:

• An Altman-Z score of 17.54 indicates that ANET is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 17.54, ANET belongs to the top of the industry, outperforming 97.96% of the companies in the same industry.
• 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 3.93 indicates that ANET has no problem at all paying its short term obligations.
• ANET has a Current ratio of 3.93. This is amongst the best in the industry. ANET outperforms 85.71% of its industry peers.
• A Quick Ratio of 3.31 indicates that ANET has no problem at all paying its short term obligations.
• ANET has a better Quick ratio (3.31) than 85.71% of its industry peers.

Profitability Assessment of 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 ANET, the assigned 9 is a significant indicator of profitability:

• ANET's Return On Assets of 20.86% is amongst the best of the industry. ANET outperforms 97.96% of its industry peers.
• ANET has a Return On Equity of 29.93%. This is amongst the best in the industry. ANET outperforms 95.92% of its industry peers.
• With an excellent Return On Invested Capital value of 23.94%, ANET belongs to the best of the industry, outperforming 97.96% of the companies in the same industry.
• Measured over the past 3 years, the Average Return On Invested Capital for ANET is significantly above the industry average of 11.44%.
• The last Return On Invested Capital (23.94%) for ANET is above the 3 year average (23.71%), which is a sign of increasing profitability.
• With an excellent Profit Margin value of 40.72%, 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.
• With an excellent Operating Margin value of 42.27%, ANET belongs to the best 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.
• ANET has a Gross Margin of 64.09%. This is amongst the best in the industry. ANET outperforms 85.71% of its industry peers.

Why is ANET a setup?

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. ANET scores a 7 out of 10:

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. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. There is a support zone below the current price at 86.51, a Stop Loss order could be placed below this zone.

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

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

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

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.