dpuleo19

$ANET is a clear leader, does still has room to go?

NYSE:ANET   Arista Networks, Inc
Arista Networks NYSE:ANET is a company that delivers software-defined networking solutions for large datacenter, cloud computing and high-frequency trading environments.

According to IBD is the leader in its industry (Computer-Networking Group). I compared Arista Net to AMEX:IYZ , an ETF concentrated in telecommunications and NYSE:ANET is leading the sector. IBD gives a Relative Strength Rating of 86 against the market.

So, the stock broke out of a large base in November of 2020 and at that moment its Price/Earnings Ratio was at 30 something. Then on the 2nd quarter broke out of a "cup and handle" and now is breaking out of a flag pattern ; this is a very good continuation pattern. The thing is that its PE Ratio is nearing 50, so it has increased a lot since it broke out from its frist base. This could mean that it may not have a lot of room to go.

As for today, the buying volume is not above average so I would wait for more confrimation signals. Still is a stock to watch very closelly.


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