10 Best Telecom Stocks To Buy Right Now

07. Arista Networks, Inc. (NYSE:ANET)

Average Analyst Share Price Target Upside: 3.60%

Average Analyst Share Price Target: $353.38

Arista Networks, Inc. (NYSE:ANET) has achieved a year-to-date price return of 47.00%, significantly outperforming the S&P 500’s 13.93% return. Arista Networks, Inc. (NYSE:ANET) growth, driven by its focus on Ethernet switches, strengthens its market position despite customer concentration risks. With an 11.1% market share and declining competition from Cisco, Arista is set to thrive amid rising demand for advanced networking solutions from cloud and IoT expansion. On July 30, Arista Networks, Inc. (NYSE:ANET) reported strong quarterly earnings, with normalized EPS of $2.10, exceeding estimates by $0.16. Revenue came in at $1.69 billion, surpassing projections by $38.98 million. Arista Networks, Inc. (NYSE:ANET) expects Q3 2024 revenue to range between $1.72 billion and $1.75 billion, slightly above the analyst consensus of $1.73 billion. On August 7, Arista Networks, Inc. (NYSE:ANET) announced that Alabama Fiber Network (AFN) has chosen it to supply routing and switching equipment for a major middle-mile network project. This initiative, part of the $340 million investment supported by Alabama’s Be Linked Alabama program, aims to provide high-capacity, reliable internet access across rural Alabama. AFN’s network will span over 6,600 miles, reaching all 67 counties.

Madison Mid Cap Fund stated the following regarding Arista Networks, Inc. (NYSE:ANET) in its Q2 2024 investor letter:

“We trimmed our positions in Arista Networks, Inc. (NYSE:ANET) and Carlisle Companies. Both of these companies have witnessed strong multi-year growth in their stock prices, which have resulted in elevated valuations. While we remain confident in the long-term prospects of both of these businesses, we trimmed our holdings to more appropriate position sizes given the risk/reward offered.”