Arista Networks Inc (ANET, Financial), a leading player in the hardware industry, has seen a significant surge in its stock price over the past three months. With a current market cap of $59.59 billion and a stock price of $192.49, the company has experienced a 16.30% increase in its stock price since July 2023. However, the past week has seen a slight dip of -5.79%. According to the GF Value, a measure of a stock's intrinsic value defined by GuruFocus.com, Arista Networks Inc is fairly valued, with a current GF Value of $192.39, up from $174.7 three months ago.
Unveiling Arista Networks Inc
Arista Networks Inc is a renowned provider of networking equipment, primarily selling Ethernet switches and software to data centers. Its flagship product is its extensible operating system (EOS), which runs a single image across all its devices. Since its inception in 2004, the company has steadily gained market share, focusing on high-speed applications. Arista's largest customers include tech giants Microsoft and Meta Platforms, and it derives approximately three-quarters of its sales from North America. 
Profitability Analysis
Arista Networks Inc boasts a Profitability Rank of 10/10, indicating a high level of profitability. The company's Operating Margin stands at 36.12%, better than 98.82% of companies in the industry. Its ROE and ROA are 34.94% and 24.78% respectively, both outperforming the majority of industry peers. Furthermore, the company's ROIC of 52.30% is better than 98.78% of companies in the industry. Arista Networks Inc has consistently demonstrated profitability over the past 10 years, outperforming 99.96% of companies. 
Growth Prospects
The company's Growth Rank is 10/10, indicating a high level of growth. Arista Networks Inc's 3-year and 5-year revenue growth rates per share are 22.90% and 18.20% respectively, outperforming 88.14% and 89.87% of companies in the industry. The company's future total revenue growth rate estimate is 17.42%, better than 90.66% of companies. Additionally, its 3-year and 5-year EPS without NRI growth rates are 17.10% and 27.00% respectively, with a future EPS without NRI growth rate estimate of 17.64%. 
Top Holders of Arista Networks Inc
The top three holders of Arista Networks Inc's stock are Andreas Halvorsen (Trades, Portfolio), holding 0.66% of shares, Steven Cohen (Trades, Portfolio), holding 0.18% of shares, and Jim Simons (Trades, Portfolio), holding 0.1% of shares.
Competitive Landscape
Arista Networks Inc faces stiff competition in the hardware industry. Its main competitors include Dell Technologies Inc with a market cap of $48.04 billion, HP Inc with a market cap of $25.71 billion, and NetApp Inc with a market cap of $14.94 billion.
Conclusion
In conclusion, Arista Networks Inc has demonstrated strong performance in the stock market, with a significant surge in its stock price over the past three months. The company's high profitability and growth ranks, coupled with its consistent profitability over the past 10 years, make it a compelling choice for investors. Despite facing competition from industry giants, Arista Networks Inc's future growth prospects look promising, making it a stock to watch in the coming months.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
