Why NYSE:ANET Is a Promising High-Growth Stock in the Midst of Consolidation.

Exploring Growth Potential: ARISTA NETWORKS INC (NYSE:ANET) and Its Base Formation. Growth investors seek promising revenue and EPS growth, and ARISTA NETWORKS INC has come under our scrutiny for potential growth investing. While it's crucial to do your own research, we've detected ARISTA NETWORKS INC on our screen for growth with base formation, suggesting it merits a closer look.

A Closer Look at Growth 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 41.09% over the past year.
• The Earnings Per Share has been growing by 28.34% on average over the past years. This is a very strong growth
• ANET shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.93%.
• Measured over the past years, ANET shows a very strong growth in Revenue. The Revenue has been growing by 22.19% on average per year.
• ANET is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.23% yearly.
• The Revenue is expected to grow by 17.26% on average over the next years. This is quite good.

A Closer Look at Health for NYSE:ANET

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:ANET scores a 9 out of 10:

• An Altman-Z score of 22.11 indicates that ANET is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 22.11, ANET belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
• 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 4.55. This indicates that ANET is financially healthy and has no problem in meeting its short term obligations.
• ANET's Current ratio of 4.55 is amongst the best of the industry. ANET outperforms 90.20% of its industry peers.
• A Quick Ratio of 3.70 indicates that ANET has no problem at all paying its short term obligations.
• ANET has a Quick ratio of 3.70. This is amongst the best in the industry. ANET outperforms 90.20% of its industry peers.

A Closer Look at Profitability 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:

• With an excellent Return On Assets value of 21.18%, ANET belongs to the best of the industry, outperforming 98.04% of the companies in the same industry.
• ANET has a Return On Equity of 29.20%. This is amongst the best in the industry. ANET outperforms 96.08% of its industry peers.
• With an excellent Return On Invested Capital value of 23.61%, ANET belongs to the best of the industry, outperforming 96.08% 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 10.07%.
• The last Return On Invested Capital (23.61%) for ANET is above the 3 year average (21.73%), which is a sign of increasing profitability.
• ANET has a better Profit Margin (39.01%) than 100.00% of its industry peers.
• ANET's Profit Margin has improved in the last couple of years.
• The Operating Margin of ANET (41.23%) is better than 100.00% of its industry peers.
• ANET's Operating Margin has improved in the last couple of years.
• With an excellent Gross Margin value of 64.01%, ANET belongs to the best of the industry, outperforming 86.27% of the companies in the same industry.

Why is NYSE:ANET a setup?

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:

Although the technical rating is only medium, ANET does present a nice setup opportunity. Prices have been consolidating lately and the volatility has been reduced. There is a support zone below the current price at 314.30, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for ANET in the last couple of days, which is a good sign.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

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 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.