Looking for stocks that could go up in 2025? Look no further than Arista Networks.
Until recently, most people had probably never heard of it. Arista Networks (NYSE: ANET ). Right now, it’s one of the hottest tickets on the market. The networking company has been very successful in its business of routers, network switches and similar hardware devices, and Wall Street is promoting it. The stock won S&P 500 Well over the last 12 months, and the story looks prime to continue.
There are many technology stocks, and many of them have made huge profits in a short period of time. What I love about Arista is that networking and cloud computing are critical to modern technologies. This is an industry that is not 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 infrastructure for many companies, and the increasing use of cloud computing bodes well for Arista’s future.
In particular, Arista boasts an extensible operating system. According to the company, it is “the flagship of Arista’s cloud network solutions for the next generation of data centers and cloud networks”. The company has a big presence in the cloud, and continues to innovate to stay ahead of the pack.
The success of the company is highlighted by cooperation with such companies. Meta forums. Meta is using Arista’s Distributed Etherlink Switch for its AI cluster, and in It marks the continuation of the collaboration that started in 2018. This is just one example of the benefits and usefulness of the company to large companies. In total, Arista currently has more than 10,000 cloud customers worldwide.
The stock has delivered nearly 100% returns over the past year, compared to the S&P 500’s return of around 27%. Broadly speaking, Arista has gained 817% over the past five years and is positioned fairly well in the industry.
Arista Networks has had three consecutive best years, generating sequential revenue growth rates of 27% in 2021, 48.6% in 2022 and 33.7% in 2023. Coincidentally, revenues have also generated strong growth rates. Diluted earnings per share increased by 31.94% in fiscal 2021, 60.86% in fiscal 2022 and 54.01% in fiscal 2023.
One of my favorite things about Arista is that it’s a stock that can be viewed in terms of net income. Too many tech stocks trade at huge multiples to earnings or no earnings at all. But Arista Networks has managed to generate meaningful income for shareholders. The company ended the first nine months of the year with net income of $2.05 billion. This is roughly a 39 percent increase from the first nine months of the year.