Arista Networks Stock Looks Technically Strong as It Sets New All-Time Highs

• Arista Networks (ANET) demonstrates strong technical momentum, recently setting an all-time high.
• Shares are up more than 70% over the past year.
• ANET maintains a 100% “Buy” technical opinion from Barchart.
• Wall Street analysts overwhelmingly rate ANET a “Strong Buy,” although some note its high valuation is a drawback.

Today’s Featured Stock

Valued at $235 billion, Arista Networks (ANET) is engaged in providing cloud networking solutions for data centers and cloud computing environments. 

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction, Weighted Alpha above 50+ and a 60-Month Beta over 1.5. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. ANET checks those boxes. The Trend Seeker issued a new “Buy” signal on June 1. Since then, the stock has gained 10.38%.

Barchart’s Technical Indicators for Arista Networks

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Arista Networks scored an all-time high of $189.82 on July 9.

• Arista has a Weighted Alpha of +70.30.
• ANET has a 100% “Buy” opinion from Barchart.
• The stock has gained 73.26% over the past 52 weeks.
• Arista has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $187.59 with a 50-day moving average of $160.71.
• ANET has made 8 new highs and gained 15.23% over the past month.
• 60-month beta of 1.60.
• Relative Strength Index (RSI) is at 62.91.
• There’s a technical support level around $183.77.

Don’t Forget the Fundamentals

• $235 billion market capitalization.
• 64.13X trailing price-earnings ratio
• Revenue is projected to grow 28.74% this year and another 23.67% next year.
• Earnings are estimated to increase 21.72% this year and an additional 22.80% next year.

Analyst and Investor Sentiment on Arista Networks

• The Wall Street analysts followed by Barchart give the stock 21 “Strong Buy,” 3 “Moderate Buy,” and 2 “Hold” opinions with price targets between $156 and $210.
• Value Line rates the stock “Above Average” with price targets from $112 to $282.
• CFRA’s MarketScope rates the stock a “Strong Buy.”
• Morningstar thinks the stock is fairly valued.
• 83,290 investors are following the stock on Seeking Alpha, which rates it a “Hold.” Its analysts note a high valuation as Arista's drawback.
• Short interest is a reasonable 1.60% of the float with 2.60 days to cover the float.

The Bottom Line on Arista Networks

Last year, revenue increased by 29.60%, net income increased by 23.12%, and cash flow from operations increased by 17.90%. Analysts predict increases in all three both this year and next year too. This stock has a large following and the low short interest implies the smart money isn’t betting against it.

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.

On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.