Bull of the Day: Arista Networks (ANET)

Arista Networks ANET 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.

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.

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.

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.

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 would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy). 

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This article originally published on Zacks Investment Research (zacks.com).

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