NYSE:ANET qualifies as a high growth stock and is consolidating.

Last update: Oct 6, 2023

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether ARISTA NETWORKS INC (NYSE:ANET) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but ARISTA NETWORKS INC has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

Growth Examination for NYSE:ANET

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:ANET scores 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.
ANET shows a strong growth in Revenue. In the last year, the Revenue has grown by 50.27%.
ANET shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.63% yearly.
ANET is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.87% yearly.
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.

Understanding NYSE:ANET's Health Score

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:

An Altman-Z score of 17.85 indicates that ANET is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 17.85, ANET belongs to the top of the industry, outperforming 98.33% of the companies in the same industry.
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.
A Current Ratio of 4.14 indicates that ANET has no problem at all paying 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.
A Quick Ratio of 2.83 indicates that ANET has no problem at all paying 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.

What does the Profitability looks like for NYSE:ANET

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:ANET, the assigned 9 is noteworthy for profitability:

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.
The Return On Equity of ANET (29.18%) is better than 95.00% of its industry peers.
The Return On Invested Capital of ANET (25.59%) is better than 98.33% of its industry peers.
ANET had an Average Return On Invested Capital over the past 3 years of 19.19%. This 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.
With an excellent Operating Margin value of 36.12%, ANET belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of ANET has grown nicely.
ANET has a Gross Margin of 60.18%. This is amongst the best in the industry. ANET outperforms 86.67% of its industry peers.

How does the Setup look for NYSE:ANET

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NYSE:ANET currently holds a 8 as its setup rating, suggesting a particular level of consolidation in the stock.

ANET has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a support zone below the current price at 185.33, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

Every day, new Strong Growth stocks can be found on ChartMill 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.