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Bull of the Day: Arista Networks (ANET)

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Key Takeaways

  • ANET shares have benefited from the AI frenzy.
  • Quarterly results have revealed big demand.
  • ANET regularly exceeds consensus quarterly expectations.

Arista Networks (ANET - Free Report) is an industry leader in data-driven, client-to-cloud networking for large AI, data center, campus, and routing environments. The stock has been a big beneficiary of the AI frenzy, with analysts raising their EPS expectations bullishly across the board.

The stock is currently a Zacks Rank #1 (Strong Buy) thanks to the positive revisions.

Zacks Investment Research
Image Source: Zacks Investment Research

In addition to positive revisions, the stock is also a part of the Zacks Internet – Software industry, which is currently ranked in the top 32% of all Zacks industries.

Let’s take a closer look at how the company currently stacks up.

ANET Shares Soar

ANET shares have delivered market-beating returns in 2025 so far, up nearly 30% compared to the S&P 500’s 14% gain. Robust quarterly results have helped drive the surge, with ANET regularly reporting significant growth stemming from red-hot demand.

Zacks Investment Research
Image Source: Zacks Investment Research

Concerning headline figures in its latest release, sales of $2.2 billion beat our consensus sales estimate by 4%, whereas adjusted EPS of $0.73 crushed consensus expectations by more than 12%.

Sale of $2.2 billion soared 30% year-over-year, whereas adjusted EPS climbed a similarly strong 42%. Impressively, the company has exceeded both consensus EPS and sales expectations in each of its last ten periods, owing to its reliability.

Below is a chart illustrating the company’s sales on a quarterly basis, with a growth acceleration visible over the past year.

Zacks Investment Research
Image Source: Zacks Investment Research

In addition, the company’s efficiency can’t be overlooked, regularly seeing meaningful margin expansion over recent periods. ANET’s GAAP gross margin reached 65.2% in its latest period, up marginally from the 64.9% mark in the same period last year.

Below is a chart illustrating the company’s gross margin on a trailing twelve-month basis. Please note that these are not actual figures.

Zacks Investment Research
Image Source: Zacks Investment Research

Bottom Line

Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.

The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.

Arista Networks (ANET - Free Report) would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy). 


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