ANET breaking outArista Networks (NYSE: ANET) has a habit of beating expectations on both the top and bottom lines, having done so in each of the past three earnings reports. The company has achieved this with impressive revenue growth, increasing sales by 41%, 28%, and 29% for the first, second, and third quarters, respectively.
You wouldn't know it by the stock price, however, which ended 2018 on a sour note, losing all its gains and falling 10% for the year, versus a 6% decline for the S&P 500. This was largely the result of the year-end correction that was especially brutal on technology stocks, and fears about the company's slowing growth rate.
The cloud networking-solutions provider will have another opportunity to impress investors, as the company is scheduled to report the financial results of its fourth quarter after the market close on Thursday, Feb. 14. Let's recap Arista Networks' third-quarter results for any insight into what investors can expect in the next earnings report.
Danny Vena, The Motley Fool
,Motley Fool•February 11, 2019
ANET trade ideas
$ANET Bullish - Buy Zone$ANET Arista Networks was in the process of breaking out of a long term bullish pennant pattern just before it was announced they were adding it to the S&P 500...with that came a volatile couple weeks.
The attention seems to have cooled off and we're finding support back at the lower trend line. Fundamentally, this company has consistently put together a solid string of earnings beats over the last two years plus. I'm expecting the stock to easily be back above $300 by next earnings report early November.
Target - $310 by Nov
Note: Informational analysis, not investment advice.
ANET, Arista Networks Inc. 10%+ Upside ANET
Trend/resistance line: Was stuck in a descending triangle (both on weekly and daily charts), recently broke out with volume and looking to fill the drop made after February correction.
Moving Averages(20/50): On the daily chart we can see a daily 20/50 cross giving a short-term bullish signal. More interesting is the 50ma cross over the price on 6/1/2018, and the positive price action afterward, again showing bullish sentiment for the upcoming days/weeks. There is a similar signal on the weekly chart with the 20ma/price.
RSI(14): Currently on the rise signaling increasing amounts of volume and increased momentum, vital after the chart breakout.
MACD (12, 26, close): Currently turning up on the weekly chart, looking to cross in the near future. MACD has already shown bullish on daily charts, which is what pushed the stock out of the descending wedge.
FIB Lines: Shown on the chart with the variety of colors, Possible consolidation in-between the 38 and 61% retracements (yellow). Have a very loose stop around the black line, as it is a relatively weak support if you were comfortable with more risk, the red may be best. I expect the stock to at least retrace to past highs.
Current position 8 shares @ 263.00
Arista Networks - Buy Opportunities - Short termAs stated in previous publications on Tradingview, we have recently decided, as a complimentary thing, to publicly share some of the analyses on equities we have done and are currently following for our private clients.
A bit late on schedule, Arista Networks, which is currently trading at 286.62 per share, broke out of it's daily correction which came into the shape of a flag type corrective structure and is heading up to retest previous tops. Whether it is the resuming of the uptrend or the completion of a bigger correction it is impossible to know, at the moment. What is certain, however, is that the price will reach the 310 - 320 level, making it a nice long opportunity, although short term. For buy and long traders who decide to enter this stock now be aware that you are positioning your trade very lat in regards to the triangle break. We therefore recommend to put all positions in break even when price reaches the 300 area, and see how it goes. If it's impulsive and carries on, keep long positions. If, instead, the price starts retracing to complete a bigger correction, your positions will automatically close in break even and we will follow the correction for later trades with a more efficient risk to reward ratio.
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