Is Arista Networks Stock a Good Investment?
Arista Networks Investment Advice | ANET |
- Examine Arista Networks' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Arista Networks' leadership team and their track record. Good management can help Arista Networks navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Communications Equipment space and any emerging trends that could impact Arista Networks' business and its evolving consumer preferences.
- Compare Arista Networks' performance and market position to its competitors. Analyze how Arista Networks is positioned in terms of product offerings, innovation, and market share.
- Check if Arista Networks pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Arista Networks' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Arista Networks stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Arista Networks is a good investment.
Sell | Buy |
Strong Sell
Market Performance | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Actively responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Examine Arista Networks Stock
Researching Arista Networks' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 18.0% of the company shares are held by company insiders. The company has Price/Earnings To Growth (PEG) ratio of 2.36. Arista Networks recorded earning per share (EPS) of 8.32. The entity had not issued any dividends in recent years. The firm had 4:1 split on the 18th of November 2021.
To determine if Arista Networks is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Arista Networks' research are outlined below:
| Arista Networks has a strong financial position based on the latest SEC filings | |
| About 70.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from zacks.com: 3 Stocks Not Named Nvidia to Buy for AI Exposure |
Arista Networks Quarterly Cost Of Revenue |
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Arista Networks uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Arista Networks. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Arista Networks' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 12th of February 2024 Upcoming Quarterly Report | View | |
| 6th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 12th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Arista Networks' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Arista Networks' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2016-08-04 | 2016-06-30 | 0.17 | 0.19 | 0.02 | 11 | ||
2016-05-05 | 2016-03-31 | 0.15 | 0.17 | 0.02 | 13 | ||
2015-11-05 | 2015-09-30 | 0.13 | 0.15 | 0.02 | 15 | ||
2015-08-06 | 2015-06-30 | 0.12 | 0.14 | 0.02 | 16 | ||
2016-11-03 | 2016-09-30 | 0.18 | 0.21 | 0.03 | 16 | ||
2015-02-19 | 2014-12-31 | 0.1 | 0.13 | 0.03 | 30 | ||
2014-11-06 | 2014-09-30 | 0.07 | 0.1 | 0.03 | 42 | ||
2018-05-03 | 2018-03-31 | 0.38 | 0.42 | 0.04 | 10 |
Know Arista Networks' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Arista Networks is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Arista Networks backward and forwards among themselves. Arista Networks' institutional investor refers to the entity that pools money to purchase Arista Networks' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Norges Bank | 2024-06-30 | 2.8 M | Capital Research Global Investors | 2024-09-30 | 2.5 M | Amundi | 2024-06-30 | 2.3 M | Ubs Asset Mgmt Americas Inc | 2024-09-30 | 2.3 M | Legal & General Group Plc | 2024-06-30 | 2.2 M | Northern Trust Corp | 2024-09-30 | 2.2 M | Wellington Management Company Llp | 2024-06-30 | 2.2 M | Nuveen Asset Management, Llc | 2024-06-30 | 2 M | Ameriprise Financial Inc | 2024-06-30 | 1.8 M | Vanguard Group Inc | 2024-09-30 | 23.8 M | Blackrock Inc | 2024-06-30 | 20.1 M |
Arista Networks' market capitalization trends
The company currently falls under 'Mega-Cap' category with a current market capitalization of 127.81 B.Market Cap |
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Arista Networks' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.22 | 0.12 | |
| Return On Capital Employed | 0.28 | 0.25 | |
| Return On Assets | 0.21 | 0.11 | |
| Return On Equity | 0.29 | 0.35 |
Determining Arista Networks' profitability involves analyzing its financial statements and using various financial metrics to determine if Arista Networks is a good buy. For example, gross profit margin measures Arista Networks' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Arista Networks' profitability and make more informed investment decisions.
Arista Networks' Earnings Breakdown by Geography
Please note, the imprecision that can be found in Arista Networks' accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Arista Networks. Check Arista Networks' Beneish M Score to see the likelihood of Arista Networks' management manipulating its earnings.
Evaluate Arista Networks' management efficiency
Arista Networks has return on total asset (ROA) of 0.1588 % which means that it generated a profit of $0.1588 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.3383 %, meaning that it created $0.3383 on every $100 dollars invested by stockholders. Arista Networks' management efficiency ratios could be used to measure how well Arista Networks manages its routine affairs as well as how well it operates its assets and liabilities. Return On Equity is likely to gain to 0.35 in 2024, whereas Return On Tangible Assets are likely to drop 0.12 in 2024. At this time, Arista Networks' Total Current Liabilities is comparatively stable compared to the past year. Liabilities And Stockholders Equity is likely to gain to about 10.4 B in 2024, whereas Non Current Liabilities Total is likely to drop slightly above 426 M in 2024.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 23.34 | 24.50 | |
| Tangible Book Value Per Share | 22.18 | 23.29 | |
| Enterprise Value Over EBITDA | 30.49 | 42.32 | |
| Price Book Value Ratio | 10.09 | 9.59 | |
| Enterprise Value Multiple | 30.49 | 42.32 | |
| Price Fair Value | 10.09 | 9.59 | |
| Enterprise Value | 14.8 B | 13.1 B |
Arista Networks benefits from a proactive management team that anticipates market trends. Our analysis delves into how this proactive stance influences financial metrics and stock valuation.
Beta 1.077 |
Basic technical analysis of Arista Stock
As of the 30th of November, Arista Networks shows the Downside Deviation of 2.73, mean deviation of 1.73, and Risk Adjusted Performance of 0.0984. Arista Networks technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.Arista Networks' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Arista Networks insiders, such as employees or executives, is commonly permitted as long as it does not rely on Arista Networks' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Arista Networks insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Jayshree Ullal over three months ago Disposition of tradable shares by Jayshree Ullal of Arista Networks at 361.99 subject to Rule 16b-3 | ||
Jayshree Ullal over six months ago Sale by Jayshree Ullal of 4500 shares of Arista Networks | ||
Jayshree Ullal over a year ago Sale by Jayshree Ullal of 4500 shares of Arista Networks | ||
Jayshree Ullal over a year ago Exercise or conversion by Jayshree Ullal of 10000 shares of Arista Networks subject to Rule 16b-3 | ||
Jayshree Ullal over a year ago Sale by Jayshree Ullal of 4000 shares of Arista Networks | ||
Jayshree Ullal over a year ago Sale by Jayshree Ullal of 4000 shares of Arista Networks | ||
Jayshree Ullal over a year ago Arista Networks exotic insider transaction detected | ||
Jayshree Ullal over a year ago Sale by Jayshree Ullal of 3000 shares of Arista Networks |
Arista Networks' Outstanding Corporate Bonds
Arista Networks issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Arista Networks uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Arista bonds can be classified according to their maturity, which is the date when Arista Networks has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| HSBC Holdings PLC Corp BondUS404280DR76 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| Morgan Stanley 3591 Corp BondUS61744YAK47 | View |
Understand Arista Networks' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Arista Networks' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0984 | |||
| Market Risk Adjusted Performance | 0.1712 | |||
| Mean Deviation | 1.73 | |||
| Semi Deviation | 2.44 | |||
| Downside Deviation | 2.73 | |||
| Coefficient Of Variation | 835.59 | |||
| Standard Deviation | 2.45 | |||
| Variance | 6.0 | |||
| Information Ratio | 0.0635 | |||
| Jensen Alpha | 0.059 | |||
| Total Risk Alpha | (0.13) | |||
| Sortino Ratio | 0.057 | |||
| Treynor Ratio | 0.1612 | |||
| Maximum Drawdown | 12.04 | |||
| Value At Risk | (4.30) | |||
| Potential Upside | 4.44 | |||
| Downside Variance | 7.44 | |||
| Semi Variance | 5.94 | |||
| Expected Short fall | (1.79) | |||
| Skewness | (0.69) | |||
| Kurtosis | 2.08 |
| Risk Adjusted Performance | 0.0984 | |||
| Market Risk Adjusted Performance | 0.1712 | |||
| Mean Deviation | 1.73 | |||
| Semi Deviation | 2.44 | |||
| Downside Deviation | 2.73 | |||
| Coefficient Of Variation | 835.59 | |||
| Standard Deviation | 2.45 | |||
| Variance | 6.0 | |||
| Information Ratio | 0.0635 | |||
| Jensen Alpha | 0.059 | |||
| Total Risk Alpha | (0.13) | |||
| Sortino Ratio | 0.057 | |||
| Treynor Ratio | 0.1612 | |||
| Maximum Drawdown | 12.04 | |||
| Value At Risk | (4.30) | |||
| Potential Upside | 4.44 | |||
| Downside Variance | 7.44 | |||
| Semi Variance | 5.94 | |||
| Expected Short fall | (1.79) | |||
| Skewness | (0.69) | |||
| Kurtosis | 2.08 |
Consider Arista Networks' intraday indicators
Arista Networks intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Arista Networks stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Arista Networks Corporate Filings
F4 | 26th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
13A | 12th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
10Q | 8th of November 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
8K | 7th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
Arista Stock media impact
Far too much social signal, news, headlines, and media speculation about Arista Networks that are available to investors today. That information is available publicly through Arista media outlets and privately through word of mouth or via Arista internal channels. However, regardless of the origin, that massive amount of Arista data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Arista Networks news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Arista Networks relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Arista Networks' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Arista Networks alpha.
Arista Networks Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Arista Networks can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Arista Networks Historical Investor Sentiment
Investor biases related to Arista Networks' public news can be used to forecast risks associated with an investment in Arista. The trend in average sentiment can be used to explain how an investor holding Arista can time the market purely based on public headlines and social activities around Arista Networks. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Arista Networks' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Arista Networks and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Arista Networks news discussions. The higher the estimate score, the more favorable the investor's outlook on Arista Networks.
Arista Networks Corporate Directors
| Charles Giancarlo | Independent Director | Profile | |
| Ann Mather | Independent Director | Profile | |
| Mark Templeton | Independent Director | Profile | |
| Nikos Theodosopoulos | Independent Director | Profile |
Already Invested in Arista Networks?
The danger of trading Arista Networks is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Arista Networks is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Arista Networks. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Arista Networks is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Additional Tools for Arista Stock Analysis
When running Arista Networks' price analysis, check to measure Arista Networks' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Arista Networks is operating at the current time. Most of Arista Networks' value examination focuses on studying past and present price action to predict the probability of Arista Networks' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Arista Networks' price. Additionally, you may evaluate how the addition of Arista Networks to your portfolios can decrease your overall portfolio volatility.