11 Best Extremely Profitable Stocks to Buy According to Analysts

5. Arista Networks Inc (NYSE:ANET)

TTM Net Profit Margin: 40.73%

Number of Hedge Fund Holders: 78

Analyst Upside Potential: 47.94%

Arista Networks Inc (NYSE:ANET) is a leading provider of data-driven networking solutions designed for large data centers, campus environments, and routing applications. The company specializes in delivering high-performance networking platforms that emphasize availability, agility, automation, analytics, and security through its advanced network operating stack.

On March 5, UBS upgraded the company from Neutral to Buy with a revised price target of $115, up from $112. The analyst cited strong growth in data center capital expenditures, which is expected to increase at an annual rate of 25% through 2027. Additionally, UBS highlighted positive trends in the company’s key metrics including purchase commitments, deferred revenue, and finished goods inventory. This suggests that Arista Networks Inc’s (NYSE:ANET) 2025 revenue guidance of 17% growth may be overly conservative. UBS views the current share levels as presenting an attractive risk/reward opportunity. It is one of the best extremely profitable stocks to buy according to analysts.

Giverny Capital Asset Management stated the following regarding Arista Networks Inc (NYSE:ANET) in its Q4 2024 investor letter:

“I trimmed Arista Networks Inc (NYSE:ANET) as it grew beyond 10% weight in the portfolio thanks to its continued outperformance. Arista has been on a tear in January and if our clients are lucky I will leave Arista alone for a while! The market appears to see that Artificial Intelligence data centers are going to require robust investment in networking equipment, and Arista is the leader in that sector.”