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Santa Clara-based Arista Networks, Inc. (ANET) engages in the development, marketing, and sale of data-driven, client-to-cloud networking solutions for data center, campus, and routing environments. With a market cap of $102.2 billion, Arista’s operations span across the Americas, Europe, and Asia Pacific.
Companies worth $10 billion or more are generally described as "large-cap stocks," Arista fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the technology sector. It currently has more than 9,000 active cloud customers worldwide.
Arista is down 12.8% from its 52-week high of $376.50, which is also its all-time high achieved on Jul. 9. ANET gained 10.4% over the past three months, outperforming the Technology Select Sector SPDR Fund’s (XLK) 3% decline during the same time frame.
Over the longer term, ANET stock looks even more appealing. ANET rallied 66.3% over the past 52 weeks and 39.5% in 2024, outpacing XLK’s 18.4% gains over the past year and 8.8% returns on a YTD basis.
To confirm the bullish trend, Arista has been trading above its 200-day and 50-day moving averages over the past year with some fluctuations.
Shares of Arista surged 11.3% after its better-than-expected Q2 earnings report unveiled on Jul. 30. The company’s revenue surged 15.9% year over year to $1.7 billion, driven by the strength in the enterprise vertical. Its net income grew by a staggering 35.3% to $665.4 million. Moreover, its EPS of $1.88 surpassed the consensus estimates by 9.3%
However, ANET stock dropped 7.5% on Sept. 3 due to a broader sell-off in tech stocks. This followed the release of the ISM manufacturing index’s August figures, which fell below expectations, raising economic concerns.
Arista’s competitor, Extreme Networks, Inc. (EXTR), has substantially underperformed ANET. EXTR stock has declined 46.1% over the past 52 weeks and 19.4% in 2024.
Among the 23 analysts covering the ANET stock, the consensus rating is a “Moderate Buy.” The mean target price of $356.65 represents a potential upside of 8.6% from current price levels.
On the date of publication, Aditya Sarawgi 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.
