5 Growth Stocks to Own Ahead of Earnings as Conditions Keep Improving for Tech
The technology-heavy Nasdaq 100 has been the top performer of the major U.S. indices by a wide margin thus far in 2023, soaring 42.3% year-to-date to reach its highest level since April 2022.
The ongoing tech rally has been fueled by growing signs that U.S. inflation may have peaked, raising hopes the Federal Reserve will end its year-long rate hike cycle.
Here are five growth stocks worth owning ahead of their quarterly reports in the weeks ahead.
I believe that Arista Networks (NYSE:ANET) is well positioned to achieve ongoing profit and sales growth as the economy continues to undergo a sea change of digitization amid the current environment.
The Santa Clara, California-based networking-infrastructure company, which sells switches that speed up communications among racks of computer servers packed into data centers, has been successful in grabbing market share from chief rivals Cisco Systems (NASDAQ:CSCO) and Juniper Networks (NYSE:JNPR) in recent years. It counts Microsoft (NASDAQ:MSFT) and Meta Platforms (NASDAQ:META) as its two largest customers.
Arista is slated to report second-quarter earnings on Monday, July 31. Not surprisingly, EPS estimates have seen 17 upward revisions in the 90 days ahead of earnings to reflect increasing optimism.
Consensus estimates call for Arista to report second-quarter profit of $1.43 per share, rising 33.3% from EPS of $1.08 in the same quarter a year earlier.
Revenue is forecast to increase 30.5% from the year-ago period to $1.37 billion, boosted by strong demand for its cloud computing network gear from large companies, government agencies, and educational institutions.
Arista has beaten Wall Street’s profit and sales expectations for 35 consecutive quarters, a testament to the
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