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Arista Networks Stock: One Chart Explains the Mega-Rally

By:
Lucas Downey
Published: Aug 2, 2023, 11:44 GMT+00:00

Arista Networks (ANET) shares have crushed it this year, ramping 52% in 2023. This uptrend is being powered by mega appetite for the stock.

S&P 500, FX Empire

In this article:

Arista Networks Attracts Big Money Inflows

Want an edge in trading? Follow the Big Money.

What’s Big Money? Said simply, it’s when a stock rises due to institutional demand. Top stocks tend to attract savvy investors.

You see, fund managers are always looking to bet on the next outperforming stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.

The 1-year action tells the story. Each green bar signals unusual buying volumes in ANET shares, pushing the stock higher:

Source: www.mapsignals.com

Few stocks have charts this strong. Recent green bars suggest healthy demand. But, what about the fundamental story?

Arista Networks Fundamental Analysis

Next, I want to make sure the fundamental story is healthy too. As you can see, ANET has had positive sales growth and earnings growth the last 3 years:

  • 3-year sales growth rate (+24%)
  • 3-year EPS growth rate (+22.1%)

Source: FactSet

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

Check this out. Arista Networks has been a top-rated stock at MAPsignals. That means the stock has had 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 numerous times. The blue bars below shows when ANET was a top pick:

Source: www.mapsignals.com

Tracking unusual volumes reveals the power of the MAPsignals process.

Arista Networks Price Prediction

The ANET rally has been in place all year. 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 want to take your investing to the next level, learn more about the MAPsignals process here.

About the Author

Lucas Downeycontributor

Lucas is a well-versed equity investor and educator. He currently is co-founder of research and analytics firm, MAPsignals.com, which focuses on finding outlier stocks by following the Big Money.

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