Arista (ANET, $232.08) Expected to Deliver Robust Networking Growth in 2019
Analysts upgraded Arista Networks Inc. from Neutral to Buy maintaining a $260 price target. From trading over $300 in August, shares of the company plunged to the sub-$200 levels at the start of 2019 -- which analysts see as a buying opportunity.
A strong Q4 performance by the company rekindled expectations of strong growth potential in 2019, as Arista maintains healthy routing and enterprises businesses.
According to analysts, webscale spending, which slowed in the second half of 2018, didn’t have much impact on networking as it did for compute and storage, as networking didn't share in the upside in webscale capex. Further, as webscale networks get more complex and less susceptible to falling memory prices, networking is likely to gain more share and importance also.
Analysts also think that with healthy cloud revenues and supporting long-term cloud spending growth, a robust ~40% 100G growth and Arista's strong 100G share of around 25% might prove pivotal for the company in 2019.
ANET in downward trend: price dove below 50-day moving average on June 20, 2025
ANET moved below its 50-day moving average on June 20, 2025 date and that indicates a change from an upward trend to a downward trend. In of 32 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for ANET moved out of overbought territory on May 20, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 51 similar instances where the indicator moved out of overbought territory. In of the 51 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on June 17, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on ANET as a result. In of 68 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for ANET turned negative on June 10, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ANET declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ANET advanced for three days, in of 354 cases, the price rose further within the following month. The odds of a continued upward trend are .
ANET may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 351 cases where ANET Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 79, placing this stock slightly better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. ANET’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (12.987) is normal, around the industry mean (6.612). P/E Ratio (45.555) is within average values for comparable stocks, (62.645). Projected Growth (PEG Ratio) (2.569) is also within normal values, averaging (55.962). ANET's Dividend Yield (0.000) is considerably lower than the industry average of (0.030). P/S Ratio (16.234) is also within normal values, averaging (12.290).
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General Information
a provider of cloud networking solutions
Industry ComputerPeripherals
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