(VIANEWS) – The NYSE ended the session with Arista Networks (ANET) rising 9.27% to $119.07 on Thursday while NYSE jumped 0.26% to $14,569.90.
Arista Networks’s last close was $108.97, 26.65% under its 52-week high of $148.57.
Is Arista Networks Stock a Good Investment?
Arista Networks is a high-growth company. The company is building new data centers, and its stock is climbing. Its second-quarter financials blew past expectations. This is due in large part to the company’s innovation. In addition to building new data centers, the company is upgrading old equipment. This will boost its cash flow, which should lead to higher share valuation.
To make an informed decision about Arista Networks stock, investors should use a combination of historical data and fundamental analysis. Historical data helps investors put the stock’s current market moves into context. For instance, Arista Networks’ beta value is 1.2944. This suggests that it is relatively risky, but it has the potential for market-beating returns.
If you want to know how to grade Arista Networks stock, you can use the A+ Investor tool. Its robust screening tool adds to qualitative teaching and helps you narrow down your investment decisions. The program also helps you select stocks and ETFs that match your portfolio.
Arista Networks is a cloud networking company. The company’s guidance for Q3 revenue is between $950 million and $1 billion, a 40% increase from the previous year. The adjusted operating margin is expected to be around 39%. The company has been consistently raising its estimates over the past several quarters.
About Arista Networks
Arista Networks, Inc. develops, markets, and sells cloud networking solutions in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. The company's cloud networking solutions consist of extensible operating systems, a set of network applications, as well as gigabit Ethernet switching and routing platforms. It also provides post contract customer support services, such as technical support, hardware repair and parts replacement beyond standard warranty, bug fix, patch, and upgrade services. The company serves a range of industries comprising internet companies, service providers, financial services organizations, government agencies, media and entertainment companies, and others. It markets and sells its products through distributors, system integrators, value-added resellers, and original equipment manufacturer partners, as well as through its direct sales force. The company was formerly known as Arastra, Inc. and changed its name to Arista Networks, Inc. in October 2008. Arista Networks, Inc. was incorporated in 2004 and is headquartered in Santa Clara, California.
Earnings per Share
Arista Networks’ trailing 12 months profit per share is $7.99
Arista Networks’ trailing 12-month price-to-earnings ratio is 14.9. The purchaser of the shares is therefore investing $14.9 per dollar in annual earnings.
For the 12 trailing months, the company’s return-on-equity, which is a measure of the profitability and shareholder equity for a business, was 24.53%.
Today’s last reported volume for Arista Networks is 4556240 which is 122.26% above its average volume of 2049950.
Year-on-year quarterly revenue growth grew by 31.4%, now sitting on 3.16B for the twelve trailing months.
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