Arista Networks’ Guidance, Buybacks Send Shares Skyward

ANET beat consensus earnings estimates for the first quarter due to big AI spending. The company generated $1.571 billion in revenue, marking growth of 16.3% over 2023’s first quarter.

It expects $1.62 billion – $1.65 billion in second-quarter revenue versus the previous estimate of $1.62 billion. Plus, ANET announced $1.2 billion in planned share buybacks ahead.

It’s no wonder ANET shares are up 32% in 2024 so far – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

Arista Networks Shares Under Heavy Accumulation

Institutional volumes reveal plenty. In the last year, ANET has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in ANET shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of technology names are under accumulation right now. But there’s a powerful fundamental backdrop going on with Arista Networks.

Arista Networks Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, ANET has had impressive sales and EPS growth in recent years:

• 3-year sales growth rate (+36.5%)
• 3-year EPS growth rate (+48.4%)

Source: FactSet

EPS is estimated to ramp higher this year by +12.9%.

Now it makes sense why the stock has been powering to new heights. ANET has a track record of solid financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Arista Networks has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times over the years. The blue bars below show when ANET was a top pick…pushing higher over time:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. It’s simple – Big Money demand drives stocks upward.

Arista Networks Price Prediction

The ANET rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in ANET at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.