On Wednesday, Arista Networks stock reached an important technical milestone, seeing its Relative Strength (RS) Rating jump into the 90-plus percentile with an improvement to 91, up from 82 the day before.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength. This proprietary rating measures market leadership by showing how a stock's price movement over the last 52 weeks compares to that of the other stocks in our database.
History shows that the stocks that go on to make the biggest gains tend to have an RS Rating of above 80 as they launch their biggest climbs.
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Is Arista Networks Stock A Buy?
Arista Networks stock has dipped below its 50-day and 200-day moving average in recent weeks amid the stock market correction. While now is not an ideal time to jump in, see if the cloud networking stock manages to form a consolidation and break out. Read "Looking For The Next Big Stock Market Winners? Start With These 3 Steps" for more tips.
In terms of fundamentals, the company has posted three quarters of accelerating earnings growth. Sales gains have also risen during the same period.
Arista Networks stock earns the No. 1 rank among its peers in the Computer-Networking industry group. Digi International and Sierra Wireless are also among the group's highest-rated stocks.
