In the tumultuous sea of the stock market, riding the wave of bullish momentum can feel like surfing a giant swell. When stocks reach or approach their 52-week highs, it signifies a significant bullish trend, with buyers taking the reins of control. Stocks hitting new highs often continue their ascent, especially when positive earnings revisions from analysts start pouring in.
Such is the story of Arista Networks (ANET), Datadog (DDOG), and Walmart (WMT), all currently basking in the sunshine of a favorable Zacks Rank and trading close to their yearly peaks. Let’s delve into the specifics driving this bullish behavior.
Surfing the AI Wave with Arista Networks
Following its most recent quarterly report, Arista Networks hiked its revenue growth guidance for the current fiscal year, causing its stock to skyrocket after earnings. Specializing in cloud networking solutions for data centers and cloud computing environments, Arista Networks provides investors with a unique exposure to the AI revolution.
With a Zacks Rank #1 (Strong Buy), Arista Networks is riding the wave of positive expectations fueled by robust business demand. The company’s sales growth has been stellar, posting Q1 sales of $1.5 billion, a whopping 16% increase over the same period last year.
The growth trajectory appears promising, with consensus estimates forecasting a 14% growth in EPS and sales for the current fiscal year. Looking ahead, next year also anticipates a double-digit surge in earnings alongside a significant sales bump.
Datadog’s Growth Trajectory
Datadog, another top pick with a Zacks Rank #1 (Strong Buy), offers a monitoring and analytics platform for a wide array of users in the cloud-centric landscape. Analysts have consistently pushed their earnings projections higher, underpinned by the company’s strong quarterly performance.
Walmart Splits and Thrives
In a strategic move, retail behemoth Walmart executed a 3-for-1 stock split earlier this year, igniting fresh interest in its shares from investors. Sporting a Zacks Rank #1 (Strong Buy), Walmart’s upward revisions for the current fiscal year indicate a positive outlook among analysts.
Final Thoughts
Stocks reaching new highs often have the wind at their back, with positive earnings estimates propelling them even higher. The trio of Arista Networks (ANET), Datadog (DDOG), and Walmart (WMT) exemplify this trend, supported by their strong Zacks Ranks and near-yearly peak performances.