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Zacks Investment Ideas feature highlights: Arista Networks, Splunk and MongoDB
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For Immediate Release
Chicago, IL – February 9, 2023 – Today, Zacks Investment Ideas feature highlights Arista Networks (ANET - Free Report) , Splunk and MongoDB (MDB - Free Report) .
3 Tech Companies with Strong Growth Outlooks
After a challenging 2022, the Zacks Computer and Technology sector has started 2023 off on a solid note, up more than 15% year-to-date and outperforming the S&P 500.
Of course, one of the most attractive features of technology stocks is undoubtedly their growth potential.
Three stocks from the Zacks Computer and Technology sector – Arista Networks, Splunk and MongoDB – all carry rock-solid growth outlooks.
In addition to solid growth trajectories, all three have witnessed positive earnings estimate revisions, indicating favorable business conditions. Let’s take a closer look at each one.
Arista Networks
Arista Networks provides cloud networking solutions for data centers and cloud computing environments. The company is currently a Zacks Rank #2 (Buy).
ANET boasts a rock-solid growth profile, with earnings forecasted to soar 52% in its current fiscal year (FY22) and a further 20% in FY23.
The earnings growth comes on the back of forecasted Y/Y revenue increases of 46% in FY22 and 22% in FY23.
In addition, the company’s earnings performance is worth highlighting; Arista Networks has exceeded earnings and revenue estimates in 12 consecutive quarters.
Just in its latest release, ANET penciled in a nearly 20% EPS beat and reported revenue 11% above expectations.
Splunk
Splunk provides software solutions that enable enterprises to gain real-time operational intelligence by harnessing the value of their data. Currently, the company boasts a Zacks Rank #2 (Buy).
Impressively, the Zacks Consensus EPS Estimate of $1.80 for Splunk’s current fiscal year suggests a nearly 250% jump in earnings Y/Y.
And in FY24, estimates allude to a further 41% of bottom line expansion.
Splunk shares currently trade at a 4.3X forward price-to-sales ratio, undoubtedly on the higher end of the spectrum but a fraction of the 8.8X five-year median.
While shares are pricey, that’s generally the price investors pay for explosive growth.
MongoDB
MongoDB provides a developer data platform that offers services and tools necessary to build distributed applications at the performance and scale that users demand. MDB is currently a Zacks Rank #2 (Buy).
MDB’s growth trajectory is the most impressive of all; the Zacks Consensus EPS Estimate of $0.31 for the company’s current fiscal year (FY23) suggests a Y/Y earnings uptick of 150%.
Looking ahead, estimates call for an additional triple-digit 206% Y/Y growth in earnings in FY24.
Like ANET, MongoDB has had no issue exceeding quarterly estimates, surpassing the Zacks Consensus EPS Estimate by double-digit percentages in 12 consecutive quarters.
In the company’s latest release, it penciled in a 48% EPS beat and a 10% sales surprise.
Bottom Line
Favorable inflationary data and an earnings “apocalypse” that has failed to materialize have both helped keep the market afloat, with the Federal Reserve also giving the market some much-needed juice.
And with sentiment shifting, the Zacks Computer and Technology sector has started 2023 off hot.
All three stocks above from the sector – Arista Networks, Splunk and MongoDB – carry favorable growth trajectories, forecasted to witness strong top and bottom line growth.
In addition, all three carry a favorable Zacks Rank, indicating that they've witnessed positive earnings estimate revisions.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: Arista Networks, Splunk and MongoDB
For Immediate Release
Chicago, IL – February 9, 2023 – Today, Zacks Investment Ideas feature highlights Arista Networks (ANET - Free Report) , Splunk and MongoDB (MDB - Free Report) .
3 Tech Companies with Strong Growth Outlooks
After a challenging 2022, the Zacks Computer and Technology sector has started 2023 off on a solid note, up more than 15% year-to-date and outperforming the S&P 500.
Of course, one of the most attractive features of technology stocks is undoubtedly their growth potential.
Three stocks from the Zacks Computer and Technology sector – Arista Networks, Splunk and MongoDB – all carry rock-solid growth outlooks.
In addition to solid growth trajectories, all three have witnessed positive earnings estimate revisions, indicating favorable business conditions. Let’s take a closer look at each one.
Arista Networks
Arista Networks provides cloud networking solutions for data centers and cloud computing environments. The company is currently a Zacks Rank #2 (Buy).
ANET boasts a rock-solid growth profile, with earnings forecasted to soar 52% in its current fiscal year (FY22) and a further 20% in FY23.
The earnings growth comes on the back of forecasted Y/Y revenue increases of 46% in FY22 and 22% in FY23.
In addition, the company’s earnings performance is worth highlighting; Arista Networks has exceeded earnings and revenue estimates in 12 consecutive quarters.
Just in its latest release, ANET penciled in a nearly 20% EPS beat and reported revenue 11% above expectations.
Splunk
Splunk provides software solutions that enable enterprises to gain real-time operational intelligence by harnessing the value of their data. Currently, the company boasts a Zacks Rank #2 (Buy).
Impressively, the Zacks Consensus EPS Estimate of $1.80 for Splunk’s current fiscal year suggests a nearly 250% jump in earnings Y/Y.
And in FY24, estimates allude to a further 41% of bottom line expansion.
Splunk shares currently trade at a 4.3X forward price-to-sales ratio, undoubtedly on the higher end of the spectrum but a fraction of the 8.8X five-year median.
While shares are pricey, that’s generally the price investors pay for explosive growth.
MongoDB
MongoDB provides a developer data platform that offers services and tools necessary to build distributed applications at the performance and scale that users demand. MDB is currently a Zacks Rank #2 (Buy).
MDB’s growth trajectory is the most impressive of all; the Zacks Consensus EPS Estimate of $0.31 for the company’s current fiscal year (FY23) suggests a Y/Y earnings uptick of 150%.
Looking ahead, estimates call for an additional triple-digit 206% Y/Y growth in earnings in FY24.
Like ANET, MongoDB has had no issue exceeding quarterly estimates, surpassing the Zacks Consensus EPS Estimate by double-digit percentages in 12 consecutive quarters.
In the company’s latest release, it penciled in a 48% EPS beat and a 10% sales surprise.
Bottom Line
Favorable inflationary data and an earnings “apocalypse” that has failed to materialize have both helped keep the market afloat, with the Federal Reserve also giving the market some much-needed juice.
And with sentiment shifting, the Zacks Computer and Technology sector has started 2023 off hot.
All three stocks above from the sector – Arista Networks, Splunk and MongoDB – carry favorable growth trajectories, forecasted to witness strong top and bottom line growth.
In addition, all three carry a favorable Zacks Rank, indicating that they've witnessed positive earnings estimate revisions.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.