Exploring the Growth Potential of NYSE:ANET as It Nears a Breakout.

In this article, we'll take a closer look at ARISTA NETWORKS INC (NYSE:ANET) as a potential candidate for growth investing. While it's important for investors to conduct their own research, ARISTA NETWORKS INC has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

Growth Examination for NYSE:ANET

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:ANET has earned a 8 for growth:

• The Earnings Per Share has grown by an impressive 62.93% over the past year.
• The Earnings Per Share has been growing by 26.75% on average over the past years. This is a very strong growth
• ANET shows a strong growth in Revenue. In the last year, the Revenue has grown by 50.27%.
• The Revenue has been growing by 21.63% on average over the past years. This is a very strong growth!
• The Earnings Per Share is expected to grow by 13.87% on average over the next years. This is quite good.
• ANET is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.07% yearly.

Assessing Health for NYSE:ANET

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:ANET has earned a 9 out of 10:

• An Altman-Z score of 17.60 indicates that ANET is not in any danger for bankruptcy at the moment.
• ANET has a Altman-Z score of 17.60. This is amongst the best in the industry. ANET outperforms 98.33% of its industry peers.
• There is no outstanding debt for ANET. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
• ANET has a Current Ratio of 4.14. This indicates that ANET is financially healthy and has no problem in meeting its short term obligations.
• Looking at the Current ratio, with a value of 4.14, ANET belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
• ANET has a Quick Ratio of 2.83. This indicates that ANET is financially healthy and has no problem in meeting its short term obligations.
• With an excellent Quick ratio value of 2.83, ANET belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.

Understanding NYSE:ANET's Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:ANET has achieved a 9:

• ANET has a Return On Assets of 20.88%. This is amongst the best in the industry. ANET outperforms 96.67% of its industry peers.
• Looking at the Return On Equity, with a value of 29.18%, ANET belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
• ANET's Return On Invested Capital of 25.59% is amongst the best of the industry. ANET outperforms 98.33% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for ANET is significantly above the industry average of 11.45%.
• The last Return On Invested Capital (25.59%) for ANET is above the 3 year average (19.19%), which is a sign of increasing profitability.
• ANET has a better Profit Margin (32.48%) than 98.33% of its industry peers.
• ANET's Profit Margin has improved in the last couple of years.
• ANET has a Operating Margin of 36.12%. This is amongst the best in the industry. ANET outperforms 100.00% of its industry peers.
• ANET's Operating Margin has improved in the last couple of years.
• ANET's Gross Margin of 60.18% is amongst the best of the industry. ANET outperforms 86.67% of its industry peers.

Looking at the Setup

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:ANET has a 8 as its setup rating:

Although the technical rating is only medium, ANET does present a nice setup opportunity. Prices have been consolidating lately. There is a support zone below the current price at 182.27, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

More Strong Growth stocks can be found in our Strong Growth screener.

Check the latest full fundamental report of ANET for a complete fundamental analysis.

Check the latest full technical report of ANET for a complete technical analysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.