Cloud networking company Arista Networks' earnings growth rate rose every quarter for the past year. Ditto for its sales. It's no surprise that the price Relative Strength Rating for top-ranked Arista Networks improved to 72 Monday, up from 69 last week. Its other key ratings are even better.
The 72 improved RS Rating means that Arista Networks stock is among the top 28% in stock price performance. It's a welcome improvement but it's not yet among the best stocks to buy and watch. The market's biggest winners typically have an RS Rating over 80 as they begin their largest price moves.
Arista Networks Other Key Ratings Are Outstanding
Among its other ratings, Arista has a near-best 97 EPS Rating, reflecting strong recent and long-term earnings growth. The last four quarters its EPS grew 32%, 35%, 59% and then 69% last quarter to $1.25. It's a notable track record considering that many tech companies got killed last year. Similarly, its revenue rose 21%, 31%, 49% and then 57% to $1.177 billion.
Its stock has been on a roller-coaster ride lately. On a weekly chart it's easy to see how it's bobbled up and down in a relatively narrow range since a Nov. 2, 2021 breakout to 122.97.
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Ready To Break Out Again?
Arista is trying to complete a consolidation with a 148.67 buy point. See if it can clear the breakout price in heavy trading. On Monday it dipped 1.8% to 123.84. The question now is: With steadily rising profits and sales, and the market in an uptrend, can this stock watchlist candidate break out to a fresh high? The company is expected to report its next quarterly numbers on or around Feb. 13.
Arista Networks holds the No. 1 rank among its peers in the Computer-Networking industry group. Extreme Networks and Digi International are also among the group's highest-rated stocks. Also Silicom and Juniper Networks.
IBD's proprietary Relative Strength Rating identifies market leadership by using a 1 (worst) to 99 (best) score that shows how a stock's price action over the last 52 weeks matched up against all other stocks.
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