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

Last update: Oct 9, 2024

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.

Assessing Growth for NYSE:ANET

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:ANET, the assigned 8 reflects its growth potential:

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

Looking at the Health

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:ANET has earned a 9 out of 10:

ANET has an Altman-Z score of 26.45. This indicates that ANET is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 26.45, ANET belongs to the best 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.
A Current Ratio of 4.55 indicates that ANET has no problem at all paying 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.
ANET has a Quick Ratio of 3.70. This indicates that ANET is financially healthy and has no problem in meeting its short term obligations.
ANET's Quick ratio of 3.70 is amongst the best of the industry. ANET outperforms 90.20% of its industry peers.

Evaluating Profitability: NYSE:ANET

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:ANET, the assigned 9 is a significant indicator of profitability:

The Return On Assets of ANET (21.18%) is better than 98.04% of its industry peers.
Looking at the Return On Equity, with a value of 29.20%, ANET belongs to the top of the industry, outperforming 96.08% of the companies in the same industry.
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 10.06%.
The 3 year average ROIC (21.73%) for ANET is below the current ROIC(23.61%), indicating increased profibility in the last year.
ANET has a Profit Margin of 39.01%. This is amongst the best in the industry. ANET outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of ANET has grown nicely.
With an excellent Operating Margin value of 41.23%, 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.
Looking at the Gross Margin, with a value of 64.01%, ANET belongs to the top of the industry, outperforming 86.27% of the companies in the same industry.

How do we evaluate the setup 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 7 as its 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 article should in no way be interpreted as advice. 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.