ARISTA NETWORKS INC (NYSE:ANET) Shows Strong Growth Momentum and Technical Setup

In high growth momentum investing, finding companies that show both solid fundamental growth and strong technical patterns is important for finding possible opportunities. This method brings together the ideas of earnings acceleration, sales growth, and positive analyst feeling with technical signs that point to good entry points. By looking for stocks with a High Growth Momentum Rating over 4, a Technical Rating over 7, and a Setup Rating over 7, investors can find securities that not only show notable growth paths but also show good chart patterns for well-timed entries.

Fundamental Growth Momentum

ARISTA NETWORKS INC (NYSE:ANET) is a strong candidate for growth momentum strategies, backed by a High Growth Momentum Rating of 6. This rating brings together several growth and momentum factors that are important for investors using methods like CANSLIM or Minervini, which focus on earnings surprises, revisions, and speeding up trends.

Important fundamental strengths include:

• EPS Growth: Year-over-year TTM EPS growth of 31.5%, with recent quarterly growth rates showing steadiness (Q2Q growth of 39.0% in the last quarter, 30.7% in the prior, and 25.0% two quarters back).
• Sales Momentum: Revenue growth stays strong, with TTM sales rising by 26.0% and the newest quarter showing 30.4% growth year-over-year.
• Profitability Expansion: Profit margins have grown notably, from 28.5% three years ago to 40.3% in the latest quarter, showing better efficiency and pricing strength.
• Analyst Confidence: Positive revisions are clear, with next-year EPS estimates moved up by 9.3% over the last three months, showing good feeling about future performance.

These parts are necessary for high growth momentum strategies, as they point to a company that is not only growing quickly but also beating expectations and getting analyst support, factors that often come before continued strong performance.

Technical Strength and Setup Quality

From a technical view, Arista Networks shows good health with a Technical Rating of 9, pointing to a steady uptrend across many timeframes. The stock is trading above all important moving averages (20-day, 50-day, 100-day, and 200-day), with both short-term and long-term trends rated as positive. This matches the wider market environment, where the S&P 500 shows positive trends in both the short and long term, giving a good setting for leading stocks like ANET.

The Setup Rating of 7 points to a consolidation pattern that gives a possible entry point. According to the technical analysis report, the stock has been trading in a range between about $129 and $156 lately, with lower volatility and a pullback that may give a chance. Important support levels are found around $143,$144 and $129,$133, giving clear areas for risk management.

This mix of technical strength and setup quality is important for momentum investors, as it allows for entries in stocks that are not only fundamentally good but also in a place to keep their upward moves without being stretched too far.

Conclusion

Arista Networks is a notable example of a stock that fits the needs for high growth momentum investing while giving a technically good setup. Its solid earnings and sales growth, growing margins, and positive analyst revisions make a firm fundamental base, while its high technical rating and helpful consolidation pattern give a tactical entry chance.

For investors wanting to find similar chances, this screen can be copied and changed using ChartMill’s stock screener. Click here to view more results from this strategy.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The author has no position in ANET. Investors should conduct their own research and consider their risk tolerance before making any investment decisions.