The Chart of the Day belongs to the cloud networking solutions 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 2/1 the stock gained 17.34%.
Arista Networks, Inc. develops, markets, and sells cloud networking solutions in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. The company's cloud networking solutions consist of extensible operating systems, a set of network applications, as well as gigabit Ethernet switching and routing platforms. It also provides post contract customer support services, such as technical support, hardware repair and parts replacement beyond standard warranty, bug fix, patch, 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
- 31.79+Weighted Alpha
- 32.85% gain in the last year
- Trend Seeker buy signal
- Above its 20, 50 and 100 day moving averages
- 4 new highs and up 8.26% in the last month
- Relative Strength Index 73.17%
- Recently traded at $153.15 with 50 day moving average of $141.33.
Fundamental Factors:
- Market Cap $45 billion
- P/E 35.38
- Revenue expected to grow 25.70% this year and another 11.70% next year
- Earnings are estimated to increase 26.00% this year and an additional 11.80% next year and continue to compound at an annual rate of 19.92% 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, 5 buy and 9 hold opinions on the stock
- Their price targets are $140 to $225 with a consensus of $167.22
- The individual investors following the stock on Motley Fool vote 940 to 10 for he stock to beat the market with the more experienced investors voting 168 to 2 for the same result
- Value Line gives it an average rating of 3 with an 18 moth price target $176
- CFRAs Market Scope gives a hold recommendation with a 12 month price target of $160
- 43,020 investors monitor the stock on Seeking Alpha
Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in the next 72 hours.
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.
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