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With a market cap of $103.9 billion, Arista Networks, Inc. (ANET) leads in cloud networking solutions, specializing in data centers and cloud environments. Based in Santa Clara, California, it develops highly scalable and programmable networking products powered by its Extensible Operating System (EOS).
Companies valued at $10 billion or more are generally considered “large-cap” stocks, and Arista Networks fits this criterion perfectly. Known for its advanced solutions in large-scale data environments, it excels in delivering high performance, low latency, and robust security, enhanced by strategic acquisitions.
However, the cloud networking company pulled back slightly from its 52-week high of $331.75, achieved on June 13. Shares of Arista Networks have surged 14.7% over the past three months, outperforming the broader S&P 500 Technology Sector SPDR’s (XLK) 8.7% gains over the same time frame.
Over the longer term, ANET stock is up 38.3% on a YTD basis, overshadowing XLK’s 17.9% gains. Moreover, shares of Arista Networks have gained 92.7% over the past 52 weeks, compared to XLK’s 31.7% gains over the same time frame.
To confirm the bullish price trend, ANET stock has been trading above its 200-day moving average since June last year and remained mostly above its 50-day moving average during this period despite some fluctuations.
Arista Networks has drawn significant investor attention over the past year primarily due to its leadership in scalable, cost-effective AI networking solutions and its strong relationships with major cloud players like Microsoft (MSFT) and Meta (META). The stock jumped almost 6.5% on June 13 after Morgan Stanley’s analyst Meta Marshall increased its price target and maintained an "overweight" rating.
Plus, following its Q1 earnings result on May 7, the stock surged nearly 6.5% in the next trading session as the company forecasted Q2 revenue above expectations, citing robust demand for its cloud networking gear driven by the expansion of AI applications, and increased sales of Ethernet switches and routers.
To emphasize the stock’s outperformance, ANET surged ahead of its rival Cisco Systems, Inc. (CSCO), which has declined 11.1% over the past 52 weeks and fallen an additional 10.3% on a YTD basis.
Despite the stock’s impressive price action, analysts are cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 23 analysts covering the stock, and it is currently trading above the mean price target of $314.75.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
