For Immediate Release
Chicago, IL – April 15, 2026 – Zacks Equity Research shares Arista Networks, Inc. ANET as the Bull of the Day and Fluence Energy, Inc. FLNC as the Bear of the Day. In addition, Zacks Equity Research provides analysis on The Home Depot, Inc. HD, Lowe's Companies, Inc. LOW and Floor & Decor Holdings, Inc. FND.
Here is a synopsis of all five stocks.
Bull of the Day:
Arista Networks, Inc. is an AI infrastructure company that works directly with AI hyperscalers Microsoft and Meta, doubling its revenue and earnings between 2022 and 2025.
The behind-the-scenes technology standout is set to follow up its stellar growth with roughly 20% EPS and sales growth in both 2026 and 2027 as the AI spending boom continues.
Arista’s upward earnings revisions have landed it a Zacks Rank #1 (Strong Buy), and it has an excellent balance sheet. On top of all that, the tech sector crushing Arista looks ready to break out of a technical range to new highs.
Buy AI Infrastructure Stock ANET and Hold Forever
Arista is a client-to-cloud networking powerhouse for large AI, data center, campus, and routing environments. Its growing portfolio helps connect computers, servers, and beyond to ensure fast and reliable data transfer.
Simply put, Arista designs and builds tons of the critical, high-speed tech-based “plumbing” that massive AI data centers rely on.
ANET’s networking infrastructure expanded rapidly over the past decade alongside the explosion of cloud computing, big data, and most recently and most critically, artificial intelligence.
Arista is steadily expanding its portfolio and its reach in an economy that’s completely reliant on ultra-fast digital infrastructure running efficiently, nonstop. Microsoft MSFT and Meta META are two of Arista’s largest clients, highlighting its best-in-class offerings and ability to compete against rivals such as Cisco.
AI hyperscalers are spending hundreds of billions of dollars building out their AI data center networks and are dependent on Arista’s offerings. Despite some AI bubble worries, the spending spree is only heating up.
AI hyperscalers are projected to spend between $600 to $700 billion in capex this year, up from around $400 billion last year. Arista's customers Meta and Microsoft have positioned themselves to be leaders in the AI economy and are primed to adapt quickly.
ANET highlighted some of its critical AI-focused milestones from Q4, including rolling out what it calls the “R4 series platforms for AI, data center, and routed backbone deployment deliver high performance, low AI job completion times” and more.
It also extended and improved its Arista AVA (Autonomous Virtual Assist) with “additional agentic AI capabilities for use cases such as multi-domain event correlation, continuous monitoring, and network troubleshooting.”
ANET’s AI-Driven Growth and Outlook
The combination of explosive AI tailwinds and durable customer relationships with some of the biggest cloud providers and AI hyperscalers, such as Microsoft should continue driving strong earnings growth for Arista.
ANET is positioned to benefit from the ongoing AI infrastructure boom and the long-term success of AI, even when the technologies mature out of their rapid growth phase.
ANET’s ability to ride the AI spending wave helped it double its revenue between 2022 ($4.38 billion) and 2025 ($9.00 billion), which came after it more than doubled its sales from 2016 to 2021. The company also more than doubled its GAAP earnings between 2022 ($1.07 a share) and 2025 ($2.75).
Arista is projected to grow its sales by another 25% in FY26 (after 29% sales growth last year) and 20% in 2027 to reach $13.50 billion next year.
The networking infrastructure firm is projected to grow its adjusted earnings roughly 19% both this year and next.
ANET’s recent upward earnings revisions earn it a Zacks Rank #1 (Strong Buy) and extend a steady run over the last several years. It has also beaten our EPS estimates for five years running.
Buy the AI Infrastructure Stock Before It Breaks Out?
The stock skyrocketed ~3,800% in the past 10 years to blow away Tech’s 420%, while crushing Microsoft’s 600% and Meta’s 500%. ANET has also more than doubled Tech in the past three years, surging 280% in the process.
The stock has doubled (+110%) in the past 12 months, and it’s on the verge of a potential breakout as it races to test its late-October peaks. ANET recently gapped above the critical level highlighted in green below. Now it only needs to run a bit more before it might hit new highs.
The stock is possibly a bit overheated in the short run, alongside many other tech names, amid the rapid comeback. But long-term investors shouldn't try to play the market timing game.
Arista trades at a 36% discount to its highs with a PEG ratio of 2.5 and 22% below its peaks at 45.6X forward earnings.
The bow on Arista’s bull case is its exceptionally strong balance sheet, boasting $10.7 billion in cash and equivalents alongside negligible, near-zero debt.
Bear of the Day:
Fluence Energy, Inc. makes large-scale battery energy storage systems and complementary software.
The company’s long-term growth prospects remain somewhat intact. But Fluence is projected to post its second straight loss in FY26, and its downward EPS revisions earn it a Zacks Rank #5 (Strong Sell).
Time to Stay Away from FLNC Stock?
Fluence Energy makes large-scale battery energy storage systems and smart software that help store electricity from solar and wind farms.
FLNC’s long-term bull case is centered around the growth of intermittent energy sources such as solar and wind, since its giant rechargeable batteries make these renewable energy sources more practical by smoothing out the ups and downs.
FLNC is part of the broader AI energy trade and is attempting to grow alongside the soaring power demands from AI data centers. The firm is projected to grow its revenue by 50% in FY26 and then 21% in FY27.
The company is also projected to trim its adjusted loss from -$0.37 a share last year to -$0.23 in FY26 and surge all the way to +$0.18 next year. Unfortunately, Fluence’s earnings outlook has tanked since it reported its Q1 FY26 results in early February.
Fluence’s FY26 estimate slipped from -$0.09 to -$0.23 a share over the last 90 days, while its FY27 estimates dropped 30% to $0.18 a share.
These negative earnings revisions earn FLNC stock a Zacks Rank #5 (Strong Sell). Its recent downward revisions are part of a disappointing run over the last few years.
FLNC stock has traded rather wildly over the last few years. Plus, it is down roughly 60% since going public in late October 2021. Therefore, it might be best for investors to look to other stocks in the wider AI energy space that have already proven themselves.
Additional content:
Steady Margins, Slow Gains: Is Home Depot's Strategy Working?
The Home Depot, Inc. is maintaining profit margins, reflecting control over costs, pricing and overall operations. This highlights a disciplined approach to managing expenses while preserving profitability, even in tough market conditions. By keeping margins stable, the company demonstrates resilience and operational efficiency.
Home Depot’s growth strategy is well-supported by its integrated retail model, digital investments and Pro-focused initiatives. Seamless connectivity across stores, online platforms and the supply chain is enhancing customer experience and driving higher engagement. The Pro segment continues to outperform, supported by targeted investments and expanding ecosystem capabilities.
By investing in technology to enhance productivity, building out its Pro ecosystem to address customer needs and improving delivery speed for every customer, HD looks to reinforce its position and gain market share. However, the company appears to be experiencing relatively slow growth. Such slower gains may reflect market saturation, cautious business decisions or external factors affecting demand.
Nevertheless, maintaining stable profitability can provide a strong financial foundation and reduce risk. At its core, Home Depot’s balanced strategy along with its strategic actions appears encouraging. The company highlights the need to evaluate how well the company’s focus on stability is translating into overall performance.
HD’s Competition
Lowe's Companies, Inc. is solidifying its Pro market leadership through the acquisitions of Artisan Design Group and Foundation Building Materials, broadening its presence in the professional market. As a core part of its Total Home strategy, Lowe’s continues to make investments in modernizing its network to boost its omnichannel capabilities. Lowe’s growth strategy focuses on strengthening its Pro segment, expanding services and enhancing digital capabilities.
Floor & Decor Holdings, Inc., together with its subsidiaries, is a high-growth, differentiated, multi-channel specialty retailer of hard surface flooring and related accessories and seller of commercial surfaces. FND also focuses on professional and commercial growth through specific programs, financial tools like credit solutions and dedicated events like "PRO Appreciation Month. Floor & Decor's efforts for professionals include the PRO Premier Rewards program for discounts and loyalty points, design and other support services.
HD’s Price Performance, Valuation and Estimates
Shares of Home Depot have lost 12% in the past six months compared with the industry’s decline of 9.5%.
From a valuation standpoint, HD trades at a forward price-to-earnings ratio of 22.31X compared with the industry’s average of 20.61X.
The Zacks Consensus Estimate for HD’s fiscal 2026 and fiscal 2027 earnings implies a year-over-year growth of 2.3% and 8.8%, respectively. The company’s EPS estimate for fiscal 2026 and fiscal 2027 has been stable in the past 30 days.
Home Depot stock currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Lowe's Companies, Inc. (LOW): Free Stock Analysis Report
The Home Depot, Inc. (HD): Free Stock Analysis Report
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Fluence Energy, Inc. (FLNC): Free Stock Analysis Report
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