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Arista (ANET) Surges 95% in a Year: Should You Ride the Wave?
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Buoyed by a holistic growth model, Arista Networks, Inc. (ANET - Free Report) has skyrocketed 94.9% over the past year compared with the industry’s growth of 67.4%. It has also outperformed its peers like Juniper Networks, Inc. (JNPR - Free Report) and Cisco Systems, Inc. (CSCO - Free Report) over this period.
Driven by improved market demand on the back of a flexible business model and solid cash flow, Arista continues to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. It is well-poised for growth in data-driven cloud networking business with proactive platforms and predictive operations.
Image Source: Zacks Investment Research
What Lies Behind This Upsurge
Arista holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. It is increasingly gaining market traction in 200- and 400-gig high-performance switching products.
In addition, Arista offers one of the broadest product lines of datacenter and campus Ethernet switches and routers in the industry. It provides routing and switching platforms with industry-leading capacity, low latency, port density and power efficiency. The company also innovates in areas such as deep packet buffers, embedded optics and reversible cooling.
Arista is witnessing solid demand trends among enterprise customers backed by its multi-domain modern software approach, which is built upon its unique and differentiating foundation, the single EOS (Extensible Operating System) and CloudVision stack. The versatility of Arista’s unified software stack across various use cases, including WAN routing and campus and data center infrastructure, sets it apart from other competitors in the industry.
Focus on Cloud-Native Software
Arista continues benefiting from the expanding cloud networking market, driven by strong demand for scalable infrastructure. In addition to high capacity and easy availability, its cloud networking solutions promise predictable performance and programmability, enabling integration with third-party applications for network management, automation and orchestration.
With customers deploying transformative cloud networking solutions, the company has announced several additions to its multi-cloud and cloud-native software product family with CloudEOS Edge. It has introduced cognitive Wi-Fi software that delivers intelligent application identification, automated troubleshooting and location services. This supports video conferencing applications like Microsoft Teams developed by Microsoft Corporation (MSFT - Free Report) and Zoom.
Estimate Revision Trend
Earnings estimates for Arista for 2024 have moved up 22.8% to $7.93 over the past year, while the same for 2025 has increased 23.9% to $8.93. The positive estimate revision depicts optimism about the stock’s growth potential.
Image Source: Zacks Investment Research
ANET Trading Above 50-Day Moving Average
Arista is currently trading just above the 50-day moving average.
Image Source: Zacks Investment Research
End Note
With solid fundamentals and healthy revenue-generating potential driven by robust demand trends, Arista appears to be a solid investment proposition. Further, a strong emphasis on quality, diligent execution of operational plans and continuous portfolio enhancements are driving more value for customers. Steady improvement in lead times and easing of supply chain woes are major tailwinds.
Riding on a robust earnings surprise history and favorable Zacks Rank, it appears primed to come up trumps in the ensuing earnings, fueling further stock price appreciation. Consequently, investors are likely to profit if they bet on this high-flying stock.
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Arista (ANET) Surges 95% in a Year: Should You Ride the Wave?
Buoyed by a holistic growth model, Arista Networks, Inc. (ANET - Free Report) has skyrocketed 94.9% over the past year compared with the industry’s growth of 67.4%. It has also outperformed its peers like Juniper Networks, Inc. (JNPR - Free Report) and Cisco Systems, Inc. (CSCO - Free Report) over this period.
Driven by improved market demand on the back of a flexible business model and solid cash flow, Arista continues to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. It is well-poised for growth in data-driven cloud networking business with proactive platforms and predictive operations.
Image Source: Zacks Investment Research
What Lies Behind This Upsurge
Arista holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. It is increasingly gaining market traction in 200- and 400-gig high-performance switching products.
In addition, Arista offers one of the broadest product lines of datacenter and campus Ethernet switches and routers in the industry. It provides routing and switching platforms with industry-leading capacity, low latency, port density and power efficiency. The company also innovates in areas such as deep packet buffers, embedded optics and reversible cooling.
Arista is witnessing solid demand trends among enterprise customers backed by its multi-domain modern software approach, which is built upon its unique and differentiating foundation, the single EOS (Extensible Operating System) and CloudVision stack. The versatility of Arista’s unified software stack across various use cases, including WAN routing and campus and data center infrastructure, sets it apart from other competitors in the industry.
Focus on Cloud-Native Software
Arista continues benefiting from the expanding cloud networking market, driven by strong demand for scalable infrastructure. In addition to high capacity and easy availability, its cloud networking solutions promise predictable performance and programmability, enabling integration with third-party applications for network management, automation and orchestration.
With customers deploying transformative cloud networking solutions, the company has announced several additions to its multi-cloud and cloud-native software product family with CloudEOS Edge. It has introduced cognitive Wi-Fi software that delivers intelligent application identification, automated troubleshooting and location services. This supports video conferencing applications like Microsoft Teams developed by Microsoft Corporation (MSFT - Free Report) and Zoom.
Estimate Revision Trend
Earnings estimates for Arista for 2024 have moved up 22.8% to $7.93 over the past year, while the same for 2025 has increased 23.9% to $8.93. The positive estimate revision depicts optimism about the stock’s growth potential.
Image Source: Zacks Investment Research
ANET Trading Above 50-Day Moving Average
Arista is currently trading just above the 50-day moving average.
Image Source: Zacks Investment Research
End Note
With solid fundamentals and healthy revenue-generating potential driven by robust demand trends, Arista appears to be a solid investment proposition. Further, a strong emphasis on quality, diligent execution of operational plans and continuous portfolio enhancements are driving more value for customers. Steady improvement in lead times and easing of supply chain woes are major tailwinds.
The stock delivered a trailing four-quarter average earnings surprise of 15.4%. Arista currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Riding on a robust earnings surprise history and favorable Zacks Rank, it appears primed to come up trumps in the ensuing earnings, fueling further stock price appreciation. Consequently, investors are likely to profit if they bet on this high-flying stock.