Today’s Featured Stock
Valued at $272 billion, Arista Networks (ANET) is engaged in providing cloud networking solutions for data centers and cloud computing environments. The company offers 10/25/40/50/100 Gigabit Ethernet switches and routers optimized for next generation data center networks. Arista uses multiple silicon architectures across its products.
What I’m Watching
I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals and superior current momentum. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. ANET checks those boxes. The Trend Seeker issued a new “Buy” signal on Aug. 3. The stock has gained 14.11% since that signal.
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www.barchart.comBarchart’s Technical Indicators for Arista Networks
Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.
Arista Networks hit an all-time high of $217.32 on Oct. 7.
Arista Networks has a Weighted Alpha of 52.75. ANET has a 100% “Buy” opinion from Barchart. The stock has gained 34.07% over the past 52 weeks. Arista Networks has its Trend Seeker “Buy” signal intact. The stock recently traded at $210.97 with a 50-day moving average of $196.95. ANET had 10 highs and gained 8.21% in the last month. 60-month beta of 1.60. Relative Strength Index (RSI) is at 60.04. There’s a technical support level around $207.88.Don’t Forget the Fundamentals
$272 million market capitalization. 68.15x trailing price-earnings ratio. Revenue is expected to grow 40.80% this year and another 28.89% next year. Earnings are estimated to increase by 38.12% this year and an additional 26.74% next year.Analyst and Investor Sentiment on Arista Networks
Wall Street analysts followed by Barchart give the stock 22 “Strong Buy,” 3 “Moderate Buy,” and 1 “Hold” opinion with price targets from $200 to $289. Value Line rates the stock “Highest” with price targets from $140 to $346. Morningstar thinks the stock is fairly valued. CFRA’s MarketScope rates the stock as “Strong Buy” with a price target of $250. 86,010 investors are following the stock on Seeking Alpha, which rates it as a “Hold” and notes a high valuation. TipRanks’ analysts have a consensus of $248.24, which is 17.66% above yesterday’s close. Short interest is 1.15% of the float with 2.54 days to cover the float.The Bottom Line on Arista Networks
The stock stands out with exceptional profitability, robust growth metrics, and impressive stock momentum, but its valuation levels are extremely stretched compared to sector peers. Consistent upward earnings estimate revisions are encouraging, balancing the high price tag.
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio, it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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