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

Last update: Oct 5, 2023

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.

A Closer Look at Growth for NYSE:ANET

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:ANET has received a 8 out of 10:

The Earnings Per Share has grown by an impressive 62.93% over the past year.
ANET shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.75% yearly.
Looking at the last year, ANET shows a very strong growth in Revenue. The Revenue has grown by 50.27%.
Measured over the past years, ANET shows a very strong growth in Revenue. The Revenue has been growing by 21.63% on average per year.
Based on estimates for the next years, ANET will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.87% on average per year.
Based on estimates for the next years, ANET will show a quite strong growth in Revenue. The Revenue will grow by 12.07% on average per year.

Deciphering NYSE:ANET's Health Rating

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:ANET has achieved a 9 out of 10:

ANET has an Altman-Z score of 17.69. This indicates that ANET is financially healthy and has little risk of bankruptcy at the moment.
ANET has a better Altman-Z score (17.69) than 98.33% of its industry peers.
ANET has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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.
ANET has a Current ratio of 4.14. This is amongst the best in the industry. ANET outperforms 85.00% of its industry peers.
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.
ANET has a better Quick ratio (2.83) than 85.00% of its industry peers.

What does the Profitability looks like for NYSE:ANET

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:ANET scores a 9 out of 10:

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

How does the Setup look for NYSE:ANET

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:

ANET has only a medium technical rating, but it does show a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a support zone below the current price at 182.60, 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.

For an up to date full fundamental analysis you can check the fundamental report of ANET

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.