Arista Networks Soars 2.15% on Earnings Beat, Analyst Upgrade

Arista Networks (ANET) surged 2.15% today, marking its fourth consecutive day of gains, with a total increase of 7.00% over the past four days. The share price reached its highest level since February 2025, with an intraday gain of 2.97%.

The strategy of buying ANET shares after they reached a recent high and selling them one week later delivered strong returns over the past five years. The strategy achieved a 293.55% return, vastly outperforming the benchmark, which remained at -100.00%. The excess return was 393.55%, indicating the strategy's ability to capitalize on price movements. With a maximum drawdown of 0.00% and a Sharpe ratio of 1.65, the strategy also showcased robust risk management, maintaining positive returns even in volatile markets.

Citigroup analyst Atif Malik maintained a "Buy" rating on Arista Networks while raising the price target from $112.00 to $123.00. This upgrade contributed to Arista Networks' stock surge, reflecting positive investor sentiment and breaching resistance levels.

Arista Networks reported $0.65 earnings per share for the quarter, exceeding the consensus estimate of $0.59. This earnings beat has likely contributed to investor confidence and a positive outlook for the company's stock performance.

Anticipation of the company's upcoming earnings announcement on August 5 and a favorable outlook for the data center switching sector have led Citi to initiate a "90-day positive catalyst watch" for Arista Networks. The analyst highlights Arista's advantage in the expanding ethernet switching market as a contributor to its growth prospects.