The fact that share price is returning to the lower bounds of the trading range offers a good timing to enter into new long positions in Arista Networks Inc.
Summary
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
Strengths
● Share prices are approaching a strong support area in daily data, which offers good timing for investors.
● According to sales estimates from analysts polled by Thomson-Reuters, the company is among the best with regard to growth.
● The group's activity appears highly profitable thanks to its outperforming net margins.
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● The group usually releases upbeat results with huge surprise rates.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
Weaknesses
● Based on current prices, the company has particularly high valuation levels.
● With an expected P/E ratio at 38.34 and 32.59 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
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Arista Networks, Inc. specializes in the development and marketing of Cloud Ethernet network switches.
Net sales break down by revenue source into sales of products (85.8%) and services (14.2%).
Net sales are distributed geographically as follows: Americas (79.4%), Europe/Middle East/Africa (11.5%) and Asia/Pacific (9.1%).