Arista Networks, Inc.(ANET) - Stock detail

Arista Networks, Inc.

US
ANET
Arista Networks Inc(Listing date: 06/06/2014)

Arista Networks, Inc. was incorporated in the State of Delaware in October 2004. The company is an industry leader in networking for data-driven, client-to-cloud large-scale data center, campus, and routing environments. Its platform delivers availability, agility, automation, analytics, and security through an advanced network operating stack.

AI Rating

Rating methodology
Latest close (chg%)166.85+1.60%
Buy price
155.00
Target price185.00
Sell price149.50
P/E TTM55.58
P/E65.41
Confidence70%
Risk score60/100
AI Summary
The stock is in an extreme overbought condition (RSI > 90) with stretched valuation (65x forward P/E) ahead of a high-volatility earnings catalyst. The current price (~$167) exceeds the trader's own disciplined entry zone ($160-$162). A Hold recommendation is an active decision to await the resolution of the imminent earnings event, which will either validate the optimism (justifying a scaled entry) or provide a better entry point.

Alpha Score

0-10
  • Trend（Score 4/10）

    ANET is in a powerful bullish uptrend but is severely overbought across multiple oscillators, warranting a hold recommendation with cautious addition on weakness.

  • Valuation（Score 2/10）

    The stock trades at elevated valuation multiples (P/E TTM: 55.58x, Forward P/E: 65.41x, P/B: 15.67x, P/S TTM: 23.33x) reflecting its high-growth profile. A PEG ratio of approximately 2.40 indicates the stock is pricing in very high future growth expectations. The current price of $166.85 exceeds the calculated 'Growth Premium Range' and suggests the stock is overvalued relative to its current earnings.

  • Financial strength（Score 9/10）
    The company exhibits very strong financial health with an exceptionally high current ratio of 3.05 and quick ratio of 2.63, indicating more than sufficient short-term assets to cover liabilities. The debt-to-asset ratio of 36.39% indicates a conservative capital structure with low reliance on debt financing.
  • Profitability（Score 9/10）
    Arista Networks demonstrates outstanding and consistent profitability with strong revenue growth accelerating from 19.50% in FY2024 to 28.60% in FY2025. Net income growth remains robust at 23.12% for FY2025. The company maintains exceptionally high and stable gross margins (~64%) and net margins (~39%), indicating strong pricing power and a competitive moat.
  • Sentiment（Score 9/10）
    Arista Networks (ANET) exhibits overwhelmingly positive sentiment driven by imminent Q1 2026 earnings with high beat probability, strong AI networking leadership with major customer wins, and analyst upgrades with a $200 price target (~30% upside), justifying a strong buy recommendation.
Latest price
$166.85+1.60%
Market cap210.09B
P/E TTM55.58
P/E65.41
Volume6.07M
Turnover1.01B