We recently published a list of Louis Navellier’s 10 Stock Picks with Huge Upside Potential. In this article, we are going to take a look at where Arista Networks Inc (NYSE:ANET) stands against other Louis Navellier’s stock picks with huge upside potential.
Navellier & Associates is an independent money management firm founded in 1987 by renowned stock analyst Louis Navellier. Headquartered in Reno, Nevada, the firm has spent over three decades delivering disciplined, style-consistent investment strategies to both individual and institutional clients. Its core mission is to maximize returns while effectively managing excessive risk, offering customized portfolios built on a proprietary mix of quantitative and fundamental analysis. Distinct from firms that mimic market indexes, Navellier & Associates aims to outperform them, constructing portfolios that exhibit low correlation to standard benchmarks, greater diversification, and reduced overall volatility.
Navellier’s investment philosophy is based on a rigorous three-step, bottom-up stock selection methodology designed to identify inefficiencies and high-growth opportunities in the market. The first step in this process uses a proprietary quantitative screening system that evaluates market data and individual stock statistics, measuring risk through standard deviation and reward through alpha. This narrows the investment universe to stocks ranking in the top percentiles for favorable risk/reward characteristics. The second step employs fundamental analysis to target companies with strong earnings growth, healthy profit margins, and reasonable forward-looking price-to-earnings ratios. The third and final step involves a proprietary optimization model that strategically allocates portfolio holdings to maximize alpha and minimize volatility. This structured approach results in portfolios that are diversified across sectors and industries and are particularly suited for long-term investors aiming to achieve steady growth in varying market conditions.
Louis Navellier, the firm’s Founder, Chairman, Chief Investment Officer, and Chief Compliance Officer, continues to oversee the portfolios he helped originate. A highly respected voice in the financial community, Navellier has published quantitative growth stock research since 1980. His insights have been widely disseminated across CNBC, Fox Business News, Bloomberg, and MarketWatch, and he has been profiled in leading financial publications such as Forbes, Fortune, Barron’s, and The Wall Street Journal. His methodologies and career have also been spotlighted in books like Secrets of the Investment All-Stars and Investing Under Fire.
Navellier & Associates manages more than $1 billion in private and institutional assets and is a trusted resource for high-net-worth individuals and organizations. The firm offers personalized portfolio reviews that include detailed analysis, risk assessments, and tailored investment recommendations. Portfolio sizes range from $100,000 to over $100 million, and all investment decisions are uniquely customized to align with each client’s financial goals, preferences, and risk tolerance. This commitment to individualized service underscores the firm’s belief that every investor deserves a strategy tailored to their unique financial journey.
As of its latest 13F filing for the fourth quarter of 2024, Navellier & Associates reported managing approximately $834 million in securities. The firm’s top ten holdings represent 29.42% of the total portfolio, highlighting a focused yet strategically diversified investment approach rooted in decades of systematic analysis and seasoned market expertise.
Our Methodology
We searched through Navellier & Associates’ Q4 2024 13F filings to identify Louis Navellier’s stock picks with the highest upside potential. From the resultant data, we picked out the equities with upside potential higher than 50% based on analyst ratings and discussed why they stood out as sound potential investments. Finally, we ranked the stocks based on their respective price targets according to analysts. Additionally, we have mentioned the hedge fund sentiment around each stock using data from 1,009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A technician in a server room managing a large-scale network of computers.
Arista Networks Inc (NYSE:ANET)
Number of Hedge Fund Holders as of Q4: 78
Navellier & Associates’ Equity Stake: $6.75 Million
Upside Potential as of April 23: 60.96%
Arista Networks Inc (NYSE:ANET), a leading American computer networking company based in Santa Clara, California, continues to solidify its position as a pioneer in data-driven, client-to-cloud networking. The company specializes in the design and sale of multilayer network switches that support software-defined networking, catering to large data centers, cloud computing environments, high-performance computing, and high-frequency trading sectors. Arista’s cutting-edge solutions enable infrastructure development for AI-driven applications, advanced routing environments, campus networks, and next-generation data centers, making it a key enabler in the evolution of modern digital ecosystems.
On February 18, 2025, Arista Networks Inc (NYSE:ANET) announced its financial results for the fourth quarter and full year ending December 31, 2024, revealing robust performance and consistent growth. For Q4 2024, the company reported revenue of $1.93 billion, reflecting a 6.6% increase from the prior quarter and a 25.3% rise compared to Q4 2023. Despite a slight year-over-year decrease in gross margin to 64.2% from 64.9%, Arista maintained its profitability, posting a net income of $801 million and diluted earnings per share (EPS) of $0.62.
The full-year financials for 2024 underscored Arista’s strong operational execution and market leadership. Annual revenue reached a record $7 billion, a 19.5% increase over 2023. Gross margin for the year rose to 64.1%, up from 61.9% the previous year, reflecting improved cost efficiencies and product mix. Net income surged to $2.85 billion, compared to $2.09 billion in 2023, while diluted EPS climbed to $2.23 from $1.65. These achievements illustrate Arista Networks Inc (NYSE:ANET)’s ability to combine rapid expansion with sustained profitability, driven by increasing demand for its AI networking solutions and its integral role in supporting next-generation cloud infrastructure.
With a price target of $108.92 and an upside potential of 60.96% according to analysts, Arista Networks Inc (NYSE:ANET) is sixth in the list of Louis Navellier’s stock picks with huge upside potential.
Artisan Global Opportunities Fund stated the following regarding Arista Networks Inc (NYSE:ANET) in its Q4 2024 investor letter:
“Along with NovoNordisk, a notable trim in the quarter included Arista Networks Inc (NYSE:ANET). Arista Networks is the market leader in cloud networking equipment used in data centers. Shares have strongly outperformed since the beginning of 2023 as its ethernet options capture market share in AI cloud environments. Many of the largest buyers in this space are focused on utilizing Arista’s networking technology, given meaningful increases in GPU utilization rates versus InfiniBand, the out-of-the-box solution from NVIDIA. We believe Arista remains exceptionally well positioned. However, we have been trimming the position due to our valuation discipline.”
Overall, ANET ranks 6th on our list of Louis Navellier’s stock picks with huge upside potential. While we acknowledge the potential of ANET as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ANET but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
