Arista Networks (ANET)
Arista Networks, ANET, is a stock I will be watching very closely in the coming weeks for a potential buy. This stock has many of the characteristics of a William O'Neil IBD winning stock. First and foremost, I really love the strong price action we've seen over the last three weeks. With its' RS line at a new high and consistent support off the 200-day moving average, ANET has proven itself to be a high relative strength stock. Currently, ANET is building a handle to round out its' base. I think it may need some time for its' 20-day and 50-day moving averages to catch up. A pullback to these key moving averages would be constructive in my opinion, as long as ANET does so in a calm and orderly manner.
We've already seen some great action in the computer networking space with JNPR looking like a true leading stock, and Arista looks like it has what it takes to deliver as well. With four quarters of consistent earnings and sales growth, coupled with solid annual earnings estimates for 2022, ANET is definitely exhibiting the numbers we want to see. Moreover, management currently owns over 20% of ANET's shares and institutional ownership has been increasing over the last year, which are both fantastic signs. It is important to note that the huge earnings gap up on November 2, 2021 was not caused by your "Aunt Suzzy" or "Cousin Mike" buying-it's funds coming in to purchase the stock. I'll will continue to monitor ANET for a low risk entry point in the coming weeks.
Risk right. Sit tight.
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