The USD 65.8 threshold area, currently tested, might facilitate a technical rebound. The company’s fundamentals could validate this scenario.
Forecasts are encouraging, sales and operating income should know growth rate over 20% and EPS estimates were largely upward revised over the last year, analysts target USD 1.34 for 2015. Moreover, there is a strong “buyer” consensus (>60%).
In an oversold situation, the share briskly drop after a contact with USD 74.25 pivot point and is now testing the USD 65.8 pivot point area as a support. This threshold could be used as a base for a further acceleration.
Consequently, investors could buy the stock at current prices and expect a reversal toward the USD 74.25 pivot point. A stop-loss should be set below the USD 63.05 support, which breakthrough would be a signal for further correction.
Arista Networks, Inc. specializes in the development and marketing of Cloud Ethernet network switches.
Net sales break down by revenue source into sales of products (85.8%) and services (14.2%).
Net sales are distributed geographically as follows: Americas (79.4%), Europe/Middle East/Africa (11.5%) and Asia/Pacific (9.1%).