Arista Networks (ANET)
Today we are adding Arista Networks (ANET) to our Watchlist. ANET reported quality increases in both top line revenue and earnings growth in their most recent earnings report on May 2nd. The company generated revenue of $877 million, an increase of 31.4% from the first quarter of 2021 with gross margins of 63%. The company issued revenue and EBITDA guidance above analyst forecasts. The stock has experienced multiple compression along with the broader market and is currently trading at 23X TTM EV/EBITDA. Based on recently reported financial performance, expected return is favorable, prompting our decision to monitor the stock as the demand for cloud and campus networking services continues to increase.
