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

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 Assessment of NYSE:ANET

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:ANET has received a 8 out of 10:

• The Earnings Per Share has grown by an impressive 37.12% over the past year.
• 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.
• Looking at the last year, ANET shows a quite strong growth in Revenue. The Revenue has grown by 18.19% in the last year.
• The Revenue has been growing by 22.19% on average over the past years. This is a very strong growth!
• The Earnings Per Share is expected to grow by 18.23% on average over the next years. This is quite good.
• Based on estimates for the next years, ANET will show a quite strong growth in Revenue. The Revenue will grow by 17.26% on average per year.

Deciphering NYSE:ANET's Health Rating

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:

• An Altman-Z score of 23.88 indicates that ANET is not in any danger for bankruptcy at the moment.
• The Altman-Z score of ANET (23.88) is better than 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 4.47 indicates that ANET has no problem at all paying its short term obligations.
• With an excellent Current ratio value of 4.47, ANET belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
• ANET has a Quick Ratio of 3.69. This indicates that ANET is financially healthy and has no problem in meeting its short term obligations.
• ANET's Quick ratio of 3.69 is amongst the best of the industry. ANET outperforms 90.20% of its industry peers.

Assessing Profitability 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:

• Looking at the Return On Assets, with a value of 20.74%, ANET belongs to the top of the industry, outperforming 98.04% of the companies in the same industry.
• ANET's Return On Equity of 28.82% is amongst the best of the industry. ANET outperforms 96.08% of its industry peers.
• ANET's Return On Invested Capital of 22.96% is amongst the best of the industry. ANET outperforms 94.12% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for ANET is significantly above the industry average of 10.37%.
• The last Return On Invested Capital (22.96%) for ANET is above the 3 year average (21.73%), which is a sign of increasing profitability.
• Looking at the Profit Margin, with a value of 40.29%, ANET belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
• ANET's Profit Margin has improved in the last couple of years.
• Looking at the Operating Margin, with a value of 42.11%, ANET belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
• ANET's Operating Margin has improved in the last couple of years.
• ANET's Gross Margin of 64.41% is amongst the best of the industry. ANET outperforms 88.24% of its industry peers.

Looking at the 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 8:

Besides having an excellent technical rating, ANET also presents a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price. There is a support zone below the current price at 396.76, a Stop Loss order could be placed below this zone.

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.

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

Disclaimer

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.