Shares of top-ranked Arista Networks touched an all-time high Thursday, the latest in a succession of highs for the artificial intelligence and cloud computing play.
Arista stock saw its Relative Strength (RS) Rating on Thursday climb to a lofty 93. The upgraded 93 RS Rating shows that Arista is in the top 7% of all stocks for price performance over the last 52 weeks. Additionally, on Wednesday, Arista stock was named to three IBD best stock lists.
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Arista Stock Up 100%-Plus In 4 Months
Over 100 years of market history shows that the best stocks typically have an RS Rating of at least 80 as they launch their largest price moves. Arista is far above that benchmark.
On April 7, Arista stock dropped to a 59.43 low in sync with the market correction. From there it skyrocketed amid continued AI market expansion. It closed at an all-time high 138.78 on Wednesday, a more than 100% rise in just over four months. It pushed above that to another record 141.01 early Thursday but retreated to below the Wednesday price amid the overall market pullback.
While the stock is not near an ideal buy zone right now, see if it manages to form and break out from a proper consolidation.
Double-Digit Revenue, Earnings Growth
In terms of fundamentals, Arista Networks has posted two quarters of rising earnings growth. Revenue gains have also risen over the same time frame. Last quarter it reported a 38% hike in earnings to 73 cents per share on a 30% lift in revenue to $2.2 billion. It's reported double-digit sales and profit gains since September 2023.
Arista earns the No. 1 rank among its peers in the Computer-Networking industry group. Extreme Networks and Calix are also among the group's highest-rated stocks.
The proprietary Relative Strength Rating measures technical performance by using a 1 (worst) to 99 (best) score that shows how a stock's price performance over the trailing 52 weeks matches up against all other stocks in our database.
This article was created automatically with Stats Perform's Wordsmith software using data and article templates supplied by Investor's Business Daily. An IBD journalist may have edited the article.
Please follow James DeTar on Twitter @JimDeTar
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