Arista Networks Stock Lost 13%, Buy Or Wait?
Arista Networks (ANET) stock is down 13.3% in 5 trading days. Already own the stock? You might want to consider holding it. Planning to buy? This might be your opportunity. Consider the following data:
- Size: Arista Networks is a $177 Bil company with $8.4 Bil in revenue currently trading at $140.42.
- Fundamentals: Last 12 month revenue growth of 27.8% and operating margin of 42.9%.
- Liquidity: Has Debt to Equity ratio of 0.0 and Cash to Assets ratio of 0.56
- Valuation: Arista Networks stock is currently trading at P/E multiple of 52.6 and P/EBIT multiple of 48.8
- Has returned (median) 82.1% within a year following sharp dips since 2010. See ANET Dip Buy Analysis.
While we like to buy dips if the fundamentals check out – for ANET, see Buy or Sell ANET Stock – we are wary of falling knives. Specifically, it is worth trying to answer if things get really bad, and ANET drops another 20-30% to $98 levels, will we be able to hold on to the stock? What is the worst case scenario? We call it downturn resilience. Turns out, the stock saw an impact slightly worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.
A single stock can be risky, but there is a huge value to a broader, diversified approach. Quiz time: Over the last 5 years, which index do you think the Trefis High Quality Portfolio outperformed — the S&P 500, the S&P 1500 Equal Weighted, or both? The answer might surprise you. See how our advisory framework helps stack the odds in your favor.
Below are the details, but before that, as a quick background: ANET provides cloud networking solutions and comprehensive post-contract support, including technical assistance, hardware repair, and software updates across global markets.
2022 Inflation Shock
- ANET stock fell 38.4% from a high of $36.71 on 27 December 2021 to $22.61 on 16 June 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 8 March 2023
- Since then, the stock increased to a high of $162.03 on 29 October 2025 , and currently trades at $140.42
| ANET | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -38.4% | -25.4% |
| Time to Full Recovery | 265 days | 464 days |
2020 Covid Pandemic
- ANET stock fell 34.0% from a high of $14.88 on 24 January 2020 to $9.81 on 16 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 23 July 2020
| ANET | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -34.0% | -33.9% |
| Time to Full Recovery | 129 days | 148 days |
2018 Correction
- ANET stock fell 43.6% from a high of $20.53 on 16 April 2019 to $11.58 on 1 November 2019 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 20 May 2021
| ANET | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -43.6% | -19.8% |
| Time to Full Recovery | 566 days | 120 days |
It is a good thing to keep in mind how low ANET could go during a downturn. And you should also check how the stock fared when compared with the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.