ARISTA NETWORKS INC (NYSE:ANET) – A Strong Contender for CANSLIM Investors

ARISTA NETWORKS INC (NYSE:ANET) emerged from our CANSLIM stock screen as a potential candidate for growth-focused investors. The company demonstrates strong earnings momentum, solid fundamentals, and favorable technical trends—key traits sought by followers of the CANSLIM strategy. Below, we examine why ANET fits the criteria.

Why ANET Fits the CANSLIM Criteria

• C – Current Earnings Growth: ANET reported a 30.7% year-over-year increase in quarterly EPS and a 27.6% rise in revenue, surpassing the CANSLIM threshold of 20% growth.
• A – Annual Earnings Growth: The company’s three-year EPS growth stands at 46.9%, well above the 25% minimum requirement.
• N – New Highs & Innovation: ANET operates in cloud networking, a high-growth sector, and has shown resilience in its technical performance.
• S – Supply & Demand: With no debt (Debt/Equity of 0) and strong liquidity, ANET maintains a healthy balance sheet.
• L – Market Leadership: ANET’s relative strength of 75.6 places it in the top quartile of performers.
• I – Institutional Sponsorship: Institutional ownership is 68.6%, within the preferred range (below 85%), indicating room for further institutional interest.
• M – Market Alignment: The S&P 500’s short-term uptrend supports a favorable environment for growth stocks like ANET.

Fundamental & Technical Overview

• Fundamentals: ANET scores 7/10 in our fundamental analysis, with high marks for profitability (ROE of 29.9%) and financial health. However, its valuation appears stretched, trading at a P/E of 37.7.
• Technical Setup: The stock has a technical rating of 7/10, with a positive short-term trend and consolidation near resistance. A breakout above $96.43 could signal further upside.

For a deeper dive, review the full fundamental report and technical analysis.

Our CANSLIM High Growth screener lists more stocks matching these criteria and is updated regularly.

Disclaimer

This is not investment advice. The observations here are based on current data, but market conditions can change. Always conduct your own research before making investment decisions.