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.
To learn more about swing trading strategies, stock market trading, and how to trade cryptocurrencies, visit my course page.
Disclaimer: This information is issued solely for informational and educational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. None of the information contained in this post constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. From time to time, the content creator or its affiliates may hold positions or other interests in securities mentioned in this blog or the associated Twitter and Instagram feeds. The stock or stocks presented are not to be considered a recommendation to buy any stock or stocks. This material does not take into account your particular investment objectives. Investors should consult their own financial or investment adviser before trading or acting upon any information provided. Past performance is not indicative of future results.