Arista Networks Is Trading at a Premium to Analysts’ Estimate



ANET’s returns

Arista Networks (ANET) was listed back in June 2014. The stock has generated multifold returns since then driven by impressive sales and earnings growth. ANET rose ~38% in 2016 and 134% in 2017. Last year, its stock fell close to 12.5%, and it’s up almost 56% so far in 2019.

ANET shares have generated absolute returns of 395% in the last three years and close to 500% in the last five years. The stocks of peers Cisco (CSCO), Juniper Networks (JNPR), and Hewlett Packard Enterprise (HPE) have generated returns of 32%, 4.4%, and 26.5%, respectively, so far in 2019.

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Analysts’ recommendations

Of the 25 analysts tracking ANET, 16 have given it “buy” recommendations, nine have given it “holds,” and none have given it “sells.” Analysts’ 12-month average price target for ANET is $306.12, and their median estimate is $307. ANET is trading at a premium of 6.3% to analysts’ median estimate.

What do the technical indicators say?

On April 22, ANET closed the trading day at $327.60. Based on that price, the stock was trading as follows:

  • 28% above its 100-day moving average of $255.72
  • 12% above its 50-day moving average of $293.03
  • 3% above its 20-day moving average of $318.51


ANET’s 14-day MACD (moving average convergence divergence) is 4.72. A stock’s MACD marks the difference between its short-term and long-term moving averages. ANET’s positive MACD score indicates an upward trading trend.

ANET has a 14-day RSI (relative strength index) score of 68, which shows that its stock is trading very close to overbought territory. An RSI score of above 70 indicates that a stock is overbought, while an RSI score of below 30 indicates that a stock is oversold.


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