It was a December to remember for Arista Networks.ticker symb=ANET]. Shares of the cloud networking software maker hit an all-time high at the end of last year. And then the market pullback hit. Like other companies its stock retreated, but it's giving off fresh signals that it may be ready for another run higher. On Monday, Arista Networks stock's Relative Strength (RS) Rating climbed to 71, up from 67 the day before.
Arista Networks Stock's Other Ratings Even Better
Using CAN SLIM metrics, the 71 RS Rating means that Arista Networks stock has outperformed 71% of all stocks in terms of stock price performance over the past year. The new 71 rating is good but not yet great. Market research shows that the best stocks typically have an 80 or higher RS Rating in the early stages of their moves. See if Arista Networks can continue to rebound and hit that benchmark.
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One outstanding rating is its 94 EPS Rating, on a 1-99 scale with 99 tops. The 94 rating means that Arista has performed in the top 6% of all stocks on recent and long-term profit growth. It's shown steady growth in year-over-year quarterly earnings over the past year, ranging from 21% to 35%.
Among its other important ratings Arista Networks stock boasts an 84 IBD Composite Rating. The Composite Rating combines five separate proprietary IBD ratings, based on key fundamental and technical criteria, into one easy-to-use score. The best growth stocks have a Composite Rating of 90 or better.
While now is not an ideal time to invest with the market still wobbly from its recent battle to hold the line, see if watchlist candidate Arista Networks stock is able to form a consolidation and break out.
In terms of fundamentals, Arista Networks has posted two quarters of increasing earnings growth. Top line growth has also moved higher during the same period. EPS grew 35% last quarter to 84 cents per share, on a 31% increase in revenue to $877 million.
Arista Networks stock holds the No. 3 rank among its peers in the Computer-Networking industry group. Sierra Wireless and DGI International are also among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's proprietary rating identifies market leadership with a 1 (worst) to 99 (best) score. The rating shows how a stock's price movement over the last 52 weeks holds up against all the other stocks in our database.
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