Arista Networks Inc (ANET) Rose on Better-Than-Expected Revenue and Earnings Growth

Madison Investments, an investment advisor, released its “Madison Mid Cap Fund” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, the fund (Class Y) decreased 1.86% compared to the 0.62% increase for the Russell Midcap Index. The Fund returned 10.46% in the full year 2024 period, compared to 15.34% for the index. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Madison Mid Cap Fund highlighted stocks like Arista Networks, Inc. (NYSE:ANET) in the fourth quarter 2024 investor letter. Arista Networks, Inc. (NYSE:ANET) is a technology company that engages in the development and distribution of development, marketing, and sale of data-driven, client to cloud networking solutions.  The one-month return of Arista Networks Inc (NYSE:ANET) was 1.85%, and its shares gained 73.18% of their value over the last 52 weeks. On January 30, 2024, Arista Networks Inc (NYSE:ANET) stock closed at $113.86 per share with a market capitalization of $143.436 billion.

Madison Mid Cap Fund stated the following regarding Arista Networks Inc (NYSE:ANET) in its Q4 2024 investor letter:

“The top five contributors for the quarter were Liberty Formula One, Arista Networks Inc (NYSE:ANET), Copart, Brookfield Asset Management, and Lithia Motors. Arista Networks posted another quarter of better-than-expected revenue and earnings growth. More importantly, the outlook remains robust, with promising results from its AI trials with customers on top of anticipated solid growth in the core business.”

Arista Networks, Inc. (ANET): Growth Fueled by AI Networking Solutions

A technician in a server room managing a large-scale network of computers.

Arista Networks Inc (NYSE:ANET) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 70 hedge fund portfolios held Arista Networks Inc (NYSE:ANET) at the end of the third quarter which was 65 in the previous quarter. In the third quarter, Arista Networks Inc’s (NYSE:ANET) revenue increased 20% year-over-year to $1.81 billion. While we acknowledge the potential of Arista Networks Inc (NYSE: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. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Arista Networks Inc (NYSE:ANET) and shared the list of trending AI stocks on investors’ Radar. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.