GET DAILY SIGNALSArista (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's RSI Indicator recovers from oversold territory
The RSI Indicator for ANET moved out of oversold territory on October 26, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 26 similar instances when the indicator left oversold territory. In 24 of the 26 cases the stock moved higher. This puts the odds of a move higher at 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 45 of 51 cases where ANET's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 88%.
The Moving Average Convergence Divergence (MACD) for ANET just turned positive on November 09, 2026. Looking at past instances where ANET's MACD turned positive, the stock continued to rise in 43 of 51 cases over the following month. The odds of a continued upward trend are 84%.
Following a +16.97% 3-day Advance, the price is estimated to grow further. Considering data from situations where ANET advanced for three days, in 307 of 368 cases, the price rose further within the following month. The odds of a continued upward trend are 83%.
ANET may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on November 10, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on ANET as a result. In 59 of 78 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 76%.
ANET moved below its 50-day moving average on October 14, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for ANET crossed bearishly below the 50-day moving average on October 21, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 10 of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 67%.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 70%.
The Aroon Indicator for ANET entered a downward trend on November 10, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 13 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock better than average.
The Tickeron SMR rating for this company is 32 (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 PE Growth Rating for this company is 43 (best 1 - 100 worst), pointing to consistent 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 Price Growth Rating for this company is 49 (best 1 - 100 worst), indicating steady price growth. ANET’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 86 (best 1 - 100 worst) indicates that the company is significantly 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 (14.557) is normal, around the industry mean (-6.197). ANET has a moderately high P/E Ratio (53.043) as compared to the industry average of (-3.670). Projected Growth (PEG Ratio) (1.533) is also within normal values, averaging (23.994). Dividend Yield (0.000) settles around the average of (0.012) among similar stocks. P/S Ratio (23.923) is also within normal values, averaging (51.774).
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General Information
a provider of cloud networking solutions
Industry ComputerProcessingHardware
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