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Chart of the Day: Arista Networks - 10 Year Gain of 2,115%!
The Chart of the Day belongs to the technology company Arista Networks (ANET). I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 5/9 the stock gained 23.67%.
Arista Networks, Inc. engages in the development, marketing, and sale of data-driven, client to cloud networking solutions for data center, campus, and routing environments in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. Its cloud networking solutions consist of Extensible Operating System (EOS), a publish-subscribe state-sharing networking operating system offered in combination with a set of network applications. The company offers data center and cloud networking systems, including newer artificial intelligence (AI) ethernet switching platforms; campus wired and wireless products, and routing systems addressing Core Routing, Edge Routing, Data Center Interconnect (DCI), Multi-cloud and Wide Area Networking (WAN) use cases; and a suite of value-add software solutions that leverage EOS to provide end-to-end orchestration, automation, analytics, network monitoring, and security. It also provides post contract customer support services, such as technical support, hardware repair and replacement parts beyond standard warranty, bug fixes, patches, and upgrade services. The company serves a range of industries comprising internet companies, service providers, financial services organizations, government agencies, media and entertainment companies, telecommunication service providers, and others. It markets and sells its products through distributors, system integrators, value-added resellers, and original equipment manufacturer partners, as well as through its direct sales force. The company was formerly known as Arastra, Inc. and changed its name to Arista Networks, Inc. in October 2008. Arista Networks, Inc. was incorporated in 2004 and is headquartered in Santa Clara, California.
Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the 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.
Barchart Technical Indicators:
- 100% technical buy signals
- 134.18+ Weighted Alpha
- 129.30% gain in the last year
- Trend Seeker buy signal
- Above its 20, 50 and 100 day moving averages
- 14 new highs and up 23.05% in the last month
- Relative Strength Index 77.43%
- Technical support level at $362.40
- Recently traded at $366.14 with 50 day moving average of $309.25
Fundamental Factors:
- Market Cap $115 billion
- P/E 54.62
- Revenue expected to grow 14.70% this year and increase another 16.40% next year
- Earnings estimated to increase 14.30% this year, an additional 14.10% next year and continue to compound at an annual rate of 19.40% for the next 5 years
Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:
- Wall Street analysts issued 12 strong buy, 6 buy, 7 hold and 1 sell recommendation
- Analysts have price targets between $220 and $425 with a consensus at $332
- Value Line rates the stock its above average rating of 2 with price target between $271 and $601 with a mid-point of $436 for a 20% gain
- CFRAs MarketScope has a 4 star buy rating but a price target of $350
- MorningStar gives the stock an below average 2 star rating with a Fair Value of $270 that is a 35% premium
- 57,400 investors monitor the stock on Seeking Alpha
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 and reevaluate your stop losses at least on a weekly basis.
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.
