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

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether ARISTA NETWORKS INC (NYSE:ANET) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but ARISTA NETWORKS INC has surfaced on our radar for growth with base formation, warranting further examination.

Growth Assessment of NYSE:ANET

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:ANET boasts a 8 out of 10:

• The Earnings Per Share has grown by an impressive 56.64% 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.
• The Revenue has grown by 42.37% in the past year. This is a very strong growth!
• 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 16.75% yearly.
• The Revenue is expected to grow by 15.07% on average over the next years. This is quite good.

What does the Health looks like for NYSE:ANET

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:ANET has earned a 9 out of 10:

• An Altman-Z score of 22.09 indicates that ANET is not in any danger for bankruptcy at the moment.
• ANET's Altman-Z score of 22.09 is amongst the best of the industry. ANET outperforms 100.00% 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.
• A Current Ratio of 4.15 indicates that ANET has no problem at all paying its short term obligations.
• ANET has a better Current ratio (4.15) than 82.76% of its industry peers.
• A Quick Ratio of 3.01 indicates that ANET has no problem at all paying its short term obligations.
• ANET has a Quick ratio of 3.01. This is amongst the best in the industry. ANET outperforms 84.48% of its industry peers.

Profitability Analysis for NYSE:ANET

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:ANET has earned a 9 out of 10:

• The Return On Assets of ANET (20.96%) is better than 96.55% of its industry peers.
• ANET has a better Return On Equity (29.22%) than 93.10% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 25.40%, ANET belongs to the top of the industry, outperforming 96.55% of the companies in the same industry.
• Measured over the past 3 years, the Average Return On Invested Capital for ANET is significantly above the industry average of 10.79%.
• The 3 year average ROIC (19.19%) for ANET is below the current ROIC(25.40%), indicating increased profibility in the last year.
• Looking at the Profit Margin, with a value of 33.97%, ANET belongs to the top of the industry, outperforming 98.28% of the companies in the same industry.
• In the last couple of years the Profit Margin of ANET has grown nicely.
• ANET's Operating Margin of 37.29% is amongst the best of the industry. ANET outperforms 100.00% of its industry peers.
• In the last couple of years the Operating Margin of ANET has grown nicely.
• The Gross Margin of ANET (60.76%) is better than 87.93% of its industry peers.

How do we evaluate the setup for NYSE:ANET?

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:ANET currently has a 7 as setup rating:

ANET has an excellent technical rating, but the quality of the setup is only medium at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.

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

Our latest full technical report of ANET contains the most current technical analsysis.

Keep in mind

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.