ARISTA NETWORKS INC (NYSE:ANET) Combines Strong Growth Momentum with Bullish Technical Setup

Investors looking for high-growth chances with good technical setups often use a multi-factor method that joins fundamental momentum with technical study. This plan finds companies showing solid earnings and revenue speed while also displaying positive price movements and consolidation shapes that point to possible breakout chances. By filtering for stocks with high growth momentum grades next to solid technical and setup scores, investors can find securities that provide both fundamental growth engines and technically good entry points.

Arista Networks Inc (NYSE:ANET) appears as a notable candidate through this method, showing a stable profile of growth momentum and technical health that matches the standards wanted by momentum investors.

Growth Momentum Fundamentals

The High Growth Momentum Grade measures different parts of a company's growth path, including past performance, speed trends, and forward-looking signs. Arista Networks shows firm growth traits across several main measures:

• Earnings Per Share growth of 31.5% over the trailing twelve months
• Steady quarterly EPS growth moving from 25% to 39% across recent quarters
• Revenue growth of 26% year-over-year with quarterly sales growth between 20-30%
• Free Cash Flow per share growth above 320% shows good operational efficiency
• Profit margin growth from 28.5% three years ago to 40.3% in the newest quarter

The company has shown notable steadiness in passing earnings forecasts, beating EPS estimates in all of the last four quarters by an average of 10.7%. This series of positive surprises shows management's skill to regularly perform better than forecasts. Also, analysts have been changing their estimates higher, with next year's EPS estimates growing by almost 10% over the past three months, showing rising belief in the company's growth outlook.

Technical Health and Setup Quality

Arista Networks shows very good technical condition, scoring a perfect 10 on ChartMill's Technical Grade scale. The detailed technical study shows several positive traits:

• Both short-term and long-term movements are strongly positive
• The stock is trading near 52-week highs, doing better than 90% of all stocks in the market
• Good relative strength compared to both the wider market and its industry group
• All main moving averages (20-day, 50-day, 100-day, and 200-day) are moving upward

The setup quality gets a notable 8, showing the stock is now in a consolidation stage that may offer a good entry chance. Prices have been trading in a set span between $138.50 and $162.68 over the past month, with the stock now nearing the upper edge of this span. The technical report finds clear support areas below the present price, with the closest support moving from $146.74 to $146.86, giving a sensible level for stop-loss setting.

Combining Growth and Technical Factors

The mix of good growth momentum and positive technical placement makes Arista Networks especially interesting for momentum investors. The company's steady earnings growth and margin growth provide the fundamental base for continued price gains, while the technical setup suggests the stock may be getting ready for its next upward step. The recent pocket pivot sign, where price moves up on higher volume than any down volume day in the prior ten sessions, adds to the positive technical view.

For investors using the high growth momentum plan, the technical breakout setup becomes especially useful when joined with good fundamental growth. It allows for entry points that lower risk while taking positions in stocks that have shown both past growth and the chance for continued momentum.

Investors wanting to find more chances that meet similar standards of good growth momentum joined with positive technical setups can view more outcomes through this screening link.

Disclaimer: This study is for information only and does not form investment guidance, suggestion, or support of any security. Investors should do their own study and talk with a qualified financial advisor before making investment choices. Past performance is not a sign of future outcomes, and all investments have risk including possible loss of principal.