Looking for Stocks That Can Soar in 2025? Look no Further Than Arista Networks.
Until recently, most people probably never even heard of it Arista Networks (NYSE: ANET). Now, it’s one of the hottest indicators on the market.The networking company has had significant success in the router, network switch and similar hardware business, and the stock has been taking notice S&P 500: excellently over the last 12 months and the story looks set to continue.
There are a lot of tech stocks out there, and many of them have made big gains in the short term. What I like about Arista is that networking and cloud computing are an integral part of modern technology. This is an industry that isn’t going away.
Arista Networks is involved in developing networks for large enterprises using cloud computing, routers, data centers and other digital resources. Networks are the backbone of infrastructure for many companies, and the growing use of cloud computing bodes well for Arista’s future.
In particular, Arista touts the virtues of its Extensible Operating System, which the company says is “the core of Arista cloud networking solutions for next-generation data centers and cloud networks.” The company is well-positioned in the cloud and continues to innovate ahead of the pack to stay.
The company’s success is highlighted by its cooperation with such companies as: Meta platforms. Meta uses Arista’s Distributed Etherlink Switch for AI clusters and marks a continuation of the partnership starting in 2018. This is just one example of the company’s merits and usefulness for large companies more than 10,000 cloud customers worldwide.
The stock has returned nearly 100% over the past year, compared to about 27% for the S&P 500. More broadly, Arista has earned 817% over the past five years and is well positioned in the sector.
Arista Networks has had three consecutive years of revenue growth of 27% in 2021, 48.6% in 2022 and 33.7% in fiscal 2023 Diluted earnings per share increased by 31.94%. 60.86% in 2022 and 54.01% in 2024. Revenue grew 17.43% over the first three quarters, with diluted earnings per share up 37.4%. who to $37.6%.
What I really like about Arista is that it’s a stock that can be viewed from a pure income perspective. So many tech stocks trade at high multiples or no earnings at all. But Arista Networks has developed meaningful earnings for shareholders The company ended the first nine months of the year with a net income of $2.05 billion. That’s a roughly 39% increase over the first nine months of last year.
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