Three Stocks to Watch: Tesla, Arista Networks, and ServiceNow Show Potential for Growth
Combining the Zacks Rank and momentum strategies is a powerful way to find winning stocks. The Zacks Rank offers a straightforward ranking based on analyst ratings, while momentum is a well-established advantage for investors aiming for successful trading.
Currently, these methods have spotlighted three stocks: Arista Networks (ANET), Tesla (TSLA), and ServiceNow (NOW), each boasting top Zacks Rankings and exceptional momentum setups. Their potential for significant gains in the near future is worth noting.
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Tesla: A Strong Buy Amid Market Volatility
This year, Tesla’s stock has faced volatility, largely due to a slowdown in electric vehicle sales. However, CEO Elon Musk often surprises the market, and with Tesla’s ventures into robots and self-driving technology, exciting possibilities lie ahead for investors.
In the past two months, analysts have been raising their earnings estimates for Tesla. The stock now holds a Zacks Rank #1 (Strong Buy). Earnings for the current quarter increased by 13.4% over the last 60 days, and fiscal year 2024 estimates have risen by 7.5% during the same timeframe.
The technical chart for Tesla shows a promising descending wedge pattern. A move above $250 might indicate a breakout, potentially igniting a significant rally. Conversely, a fall below $240 could invalidate this pattern, prompting investors to reconsider their positions.
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Arista Networks: Stocks Set to Break Out
Arista Networks, known for high-performance networking solutions for data centers and cloud providers, is another noteworthy stock. It holds a Zacks Rank #1 (Strong Buy) along with promising earnings growth trajectories and ranks in the top 13% within its industry.
Forecasts indicate Arista’s earnings could surge by 15.3% annually over the next three to five years. Additionally, sales may rise by 16.3% this year and 17.4% next year.
ANET is currently showing a breakout from a bull flag pattern. If it can remain above $400, it may signal the onset of a new rally. A reversal below this level could suggest the stock needs more time before continuing its upward trajectory.
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ServiceNow: Gaining Momentum in the Cloud
ServiceNow provides a range of cloud-based software solutions for IT management, human resources, and customer service, helping businesses automate tasks and enhance productivity.
With a Zacks Rank #1 (Strong Buy), ServiceNow’s earnings are projected to grow 24.7% annually over the next three to five years. Sales estimates indicate growth of 22.3% this year and 20.1% next year.
NOW stock is forming a bullish technical pattern, following a gap up from earnings results. If the stock can break above the $955 resistance level, it could have significant upward momentum. In contrast, losing support at $930 may lead investors to reconsider their positions.
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Should Investors Consider NOW, ANET, and TSLA?
The outlook for Arista Networks, Tesla, and ServiceNow is encouraging, combining solid fundamental growth with strong technical indicators. Each company displays impressive earnings growth potential and advantageous chart formations, making them attractive options for investors seeking high-momentum opportunities.
For those looking to invest in growth and momentum, NOT, ANET, and TSLA present a balanced mix of indicators that suggest strong future performance. Monitoring key price levels and managing risk remains paramount for success in trading these stocks.
Top Stock Pick Expected to Double
Zacks experts have identified their favorite stocks poised to soar by 100% or more in the coming months. Among these, Director of Research Sheraz Mian has selected one with the most explosive upside potential.
Targeting millennial and Gen Z consumers, this company generated nearly $1 billion in revenue just last quarter. After a recent pullback in stock price, this might be an ideal time to invest. Past successes like Nano-X Imaging, which rose by +129.6% in under nine months, further underline the potential here.
Free: Discover Our Top Stock Plus Four Others
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Tesla, Inc. (TSLA): Free Stock Analysis Report
ServiceNow, Inc. (NOW): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
