When it comes to gaining exposure to the generative artificial intelligence (GenAI) growth boom, investors have many options. However, owning shares in AI chip makers, or software companies, isn’t the only way to play this trend. One can also gain exposure, by owning of edge computing stocks.What is edge computing? A computing model that differs from the traditional data server model, edge computing entails functions like calculations and data storage happening closer to the data source. This results in fas ...

Arista Networks (ANET) closed the latest trading day at $360.42, indicating a -0.41% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.28%. Meanwhile, the Dow gained 0.53%, and the Nasdaq, a tech-heavy index, added 0.4%.Heading into today, shares of the cloud networking company had gained 10.17% over the past month, outpacing the Computer and Technology sector's gain of 4.22% and the S&P 500's gain of 3.78% in that time.The investment community will be cl ...

When stocks are cruising at or nearing 52-week highs, it reflects considerable bullishness with trends where buyers are in control. Stocks making new highs tend to make even higher highs, particularly when analysts' positive earnings estimate revisions are rolling in. That’s been precisely the case for Arista Networks (ANET) , Datadog (DDOG) , and Walmart (WMT) , all of which presently sport a favorable Zacks Rank and are trading near 52-week highs. Let’s take a closer look at what’s been driving the bullis ...

Stock Performance - Arista Networks stock closed at $371.07, reflecting a +1.35% increase from the previous trading day [1] - The stock outperformed the S&P 500 (+0.1%), Dow (-0.08%), and Nasdaq (+0.28%) on the same day [1] - Over the past month, Arista Networks shares appreciated by 23.37%, surpassing the Computer and Technology sector (+8.41%) and the S&P 500 (+4.08%) [1] Earnings and Revenue Expectations - Analysts expect Arista Networks to report earnings of $1.93 per share for the upcoming quarter, representing a year-over-year growth of 22.15% [1] - Revenue for the quarter is anticipated to be $1.64 billion, indicating a 12.31% increase from the same quarter last year [1] - For the entire fiscal year, consensus estimates predict earnings of $7.92 per share (+14.12% YoY) and revenue of $6.69 billion (+14.15% YoY) [2] Valuation Metrics - Arista Networks has a Forward P/E ratio of 46.24, significantly higher than its industry average of 17.94 [3] - The company's PEG ratio stands at 2.88, compared to the industry average of 1.75 [3] Industry and Analyst Sentiment - The Communication - Components industry, part of the Computer and Technology sector, ranks 206 out of over 250 industries, placing it in the bottom 19% [4] - Arista Networks currently holds a Zacks Rank of 1 (Strong Buy), with stocks in this category historically delivering an average annual return of +25% since 1988 [3] - Recent analyst estimate revisions for Arista Networks reflect optimism about the company's business and profitability, with research showing a direct correlation between estimate changes and near-term stock prices [2]

Are analysts right to be pessimistic about these AI stocks? What's the modern-day equivalent to King Midas turning everything he touched to gold? Artificial intelligence (AI) is a top candidate. Many AI stocks have delivered sizzling gains over the past 18 months. Nvidia (NVDA -0.36%) is the most famous example, with the demand for its AI chips helping push the company's market cap above $3 trillion. But all good things eventually come to an end. Although analysts still think Nvidia has some room to run, th ...

Identifying the best growth stocks to outperform the market with is no easy task. Especially ones that can consistently outperform the market year after year. Odds are that if you are not new to the stock market, you’ve invested in a company that had one or more exceptional years followed by many bad ones. Suddenly your hard-earned cash is lost after what seemed like a sustainable rally. This is why careful selection of growth stocks is paramount to protect your wealth and limit the potential downside risk ...

Investors taking a second glance at Arista Networks (ANET)  stock may notice that it has more than doubled since 2023 and is sitting on +47% gains this year.As one of the market’s top performers, let’s see if the rally in the cloud networking giant’s stock can continue and if it's still time to buy.Image Source: Zacks Investment ResearchConsistency & Cloud DemandWith internet servers, software, and databases revolving around cloud networks which are a single ecosystem of connectivity, Arista's solutions hav ...

It’s no secret that the hardware industry stands to gain a lot from the boom in artificial intelligence. After all, it is the continued growth of the tech hardware industry that makes developments, such as AI, more available to the public.The global computer hardware market is expected to grow to $914.55 billion by 2028 at a 6.5% CAGR. While this growth comes from a myriad of factors, one of the more notable ones include the expansion of data centers. All of the cloud service industry leaders, Amazon (NASDA ...

Group 1: GE Aerospace and Market Trends - GE Aerospace stock has gained 86% over the past 12 months, with more than half of the gains occurring in 2024, indicating a shift towards momentum stocks [1] - There are 67 U.S.-listed stocks with a market cap of $2 billion or higher that have achieved a 100% return or more over the past 52 weeks, highlighting a broader trend in the market [1] Group 2: Modine Manufacturing - Modine Manufacturing has a market cap of $4.92 billion and has seen a 201% gain over the past 52 weeks, tripling its market cap since last June [2] - In 2024, Modine reported a 5% increase in sales to $2.4 billion and a 48% jump in adjusted EBITDA to $314 million, resulting in an EBITDA margin of 13.1% [2] - The company expects sales to grow by 7.5% in 2025, with adjusted EBITDA projected to reach $375 million, nearly 20% higher than in 2024 [3] Group 3: Arista Networks - Arista Networks has a market cap of $105.72 billion and has gained 124% over the past 52 weeks, with a total stock appreciation of 3,038% since its IPO in June 2014 [4] - In Q1 2024, Arista's revenue increased by 16.3% year-over-year to $1.57 billion, while non-GAAP net income rose by 40.9% to $637.7 million [4] - The company derives approximately 39% of its revenue from AI leaders like Microsoft and Meta Platforms, indicating strong demand for its networking products [4] Group 4: Sterling Infrastructure - Sterling Infrastructure has a market cap of $3.59 billion and has achieved a 123% gain over the past 52 weeks, benefiting from infrastructure rebuilding efforts [6] - The company reported a backlog of $2.35 billion and expects revenues to grow by 12% year-over-year, with net income projected to increase by 23% [6] - Sterling's cash flow has grown significantly from $25 million in 2017 to $479 million in 2023, resulting in a free cash flow yield of 12.2% [6][7]

Market Overview - Nvidia is currently experiencing its second worst correction of 2024, approximately 14% off its all-time high, while the S&P 500 remains nearly at its all-time high [1] - Other leading AI stocks, including Qualcomm and Broadcom, have also seen declines of around 14% from their recent record highs, but they are still significantly up year-to-date with Nvidia gaining 147%, Broadcom 42%, and Qualcomm 40% [2] Investment Opportunities - Constellation Energy Corporation (CEG) and Arista Networks (ANET) are highlighted as top investment opportunities in the AI sector, outperforming Qualcomm and Broadcom [3] - CEG is positioned to benefit from the AI boom due to its role as a leading provider of clean nuclear power, essential for data centers that support AI innovation [5] - CEG has a Zacks Rank 1 (Strong Buy) rating, supported by continuous earnings estimate upgrades since mid-2023 [5] - Arista Networks is crucial for AI applications by providing the necessary networking infrastructure, with a focus on high-speed data flow and advanced analytics [8] - Arista's stock has compounded at an annual rate of 39% over the last five years, with EPS growth from $1.95 in 2020 to $6.69 in the trailing twelve months [9] Nvidia's Market Position - Nvidia is recognized as a leader in the AI boom, with its GPUs being essential for complex AI calculations, outperforming traditional CPUs [11] - Annual sales for Nvidia have surged from $11 billion in 2020 to $80 billion today, with EPS increasing from $0.11 to $1.70 [12] - Despite significant price appreciation, Nvidia's earnings multiple is lower now than in 2020, indicating strong growth potential [12] General Sentiment - Despite market corrections, AI stocks are expected to maintain their value, with recent surges led by Nvidia, Arista Networks, and Constellation Energy [14]