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.

Exploring NYSE:ANET's Growth

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:

• ANET shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 51.09%, which is quite impressive.
• ANET shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 28.34% yearly.
• Looking at the last year, ANET shows a very strong growth in Revenue. The Revenue has grown by 33.75%.
• ANET shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.19% yearly.
• Based on estimates for the next years, ANET will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.46% on average per year.
• The Revenue is expected to grow by 10.36% on average over the next years. This is quite good.

Unpacking 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:

• An Altman-Z score of 22.37 indicates that ANET is not in any danger for bankruptcy at the moment.
• ANET has a Altman-Z score of 22.37. This is amongst the best in the industry. ANET outperforms 100.00% 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.
• A Current Ratio of 4.39 indicates that ANET has no problem at all paying its short term obligations.
• ANET has a better Current ratio (4.39) than 85.71% of its industry peers.
• A Quick Ratio of 3.31 indicates that ANET has no problem at all paying its short term obligations.
• ANET's Quick ratio of 3.31 is amongst the best of the industry. ANET outperforms 85.71% of its industry peers.

Assessing Profitability 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:

• The Return On Assets of ANET (20.98%) is better than 96.43% of its industry peers.
• With an excellent Return On Equity value of 28.91%, ANET belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
• ANET's Return On Invested Capital of 24.11% is amongst the best of the industry. ANET outperforms 96.43% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for ANET is significantly above the industry average of 9.89%.
• The last Return On Invested Capital (24.11%) for ANET is above the 3 year average (21.73%), which is a sign of increasing profitability.
• ANET has a Profit Margin of 35.62%. This is amongst the best in the industry. ANET outperforms 98.21% of its industry peers.
• In the last couple of years the Profit Margin of ANET has grown nicely.
• ANET has a better Operating Margin (38.52%) than 100.00% of its industry peers.
• ANET's Operating Margin has improved in the last couple of years.
• The Gross Margin of ANET (61.95%) is better than 87.50% of its industry peers.

Why is NYSE:ANET a setup?

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NYSE:ANET is 7:

Besides having an excellent technical rating, ANET also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 287.75. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 274.65, a Stop Loss order could be placed below this zone.

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.

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

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.