Looking for stocks that could rise in 2025? Look no further than Arista Networks.

Until recently, many people had probably never heard of it Arista Networks (NYSE: Annette). Now, it is one of the most important indicators in the market. The networking company has been so successful in its business of routers, network switches and similar types of devices, Wall Street has taken notice. The stock has won Standard & Poor’s 500 has been going great over the past 12 months, and the story looks set to continue.

There are a lot of technology stocks out there, and many of them have seen big gains in the short term. What I like about Arista is the fact that networking and cloud computing are an integral part of modern technologies. This is an industry that is not going away.

Arista Networks is involved in developing networks for large enterprises through the use of cloud computing, routers, data centers and other digital resources. Networking is the infrastructure backbone of many companies, and the growing use of cloud computing bodes well for Arista’s future.

In particular, Arista boasts the advantages of its extensible operating system. As the company notes, it’s “the core of Arista’s cloud networking solutions for next-generation data centers and cloud networks.” The company has a great position in the cloud space, and continues to innovate to stay ahead of the curve.

The company’s success is highlighted through its collaborations with companies such as Meta platforms. Meta uses Arista’s distributed Etherlink switch for AI clusters, and represents a continuation of a collaboration dating back to 2018. This is just one example of the company’s merit and utility for larger enterprises. In total, Arista currently has more than 10,000 cloud customers around the world.

The stock has returned nearly 100% over the past year compared to the S&P 500’s return of about 27%. More broadly, Arista has gained 817% over the past five years and is ideally positioned in the industry.

Arista Networks has had three great years in a row, posting consecutive revenue growth rates of 27% in 2021, 48.6% in 2022, and 33.7% in 2023. Correspondingly, earnings have delivered significant growth rates as well. In fiscal 2021, diluted EPS increased 31.94%, 60.86% in 2022, and 54.01% in 2023. Revenues in 2024 rose 17.43% over the first three quarters, with diluted EPS up 37.6%. To $6.41 per share.

One of the things I really like about Arista is that it’s a stock that can be looked at in terms of net income. Many technology stocks trade at high multiples of earnings or do not generate earnings at all. But Arista Networks has evolved to the point of generating meaningful profits for shareholders. The company ended the first nine months of the year with net income of $2.05 billion. This represents an increase of approximately 39% from the first nine months of the previous year.

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