The Magnificent 7, featuring Apple, Meta Platforms, Alphabet, Microsoft, Tesla, NVIDIA, and Amazon, have long been the focal point of the market, dazzling investors with remarkable performance and awe-inspiring gains. Recent quarterly results have only added to their mystique, extending the positive price action and further solidifying their dominance.
However, outshining this illustrious group has seemed nearly unattainable for most. Yet, a few, including Vertiv VRT, CrowdStrike CRWD, and Arista Networks ANET, have defied the odds, outperforming the Magnificent 7 as a collective unit over the past year, as shown in the illustration below.
Image Source: Zacks Investment Research
Notably, all three of these stocks carry a favorable Zacks Rank, indicative of upward trending earnings estimate revisions. For investors eyeing the prospect of outperforming the market titans, a closer examination of each of these outliers is warranted.
Arista Networks
Arista Networks, bestowed with a Zacks Rank #1 (Strong Buy), stands as an industry leader in data-driven, client-to-cloud networking for large data centers, campus, and routing environments. The revisions trend has been exceedingly bullish for its current fiscal year outlook, up 13% to $6.55 per share over the last year.
Image Source: Zacks Investment Research
This company warrants attention for its impeccable quarterly consistency, surpassing consensus expectations for both top and bottom line metrics in each of its last ten releases. This surge has been underpinned by significant expansion in its top line over the last few quarters, propelled by soaring customer momentum in both enterprise and cloud/AI sectors.
Image Source: Zacks Investment Research
With the next quarterly release scheduled for February 12th, current consensus expectations prophesy a 21% surge in earnings on 20% higher sales. Analysts have revised their bottom line expectations slightly upward since the previous November.
Image Source: Zacks Investment Research
CrowdStrike
CrowdStrike, currently flaunting a Zacks Rank #1 (Strong Buy), spearheads the next-generation endpoint protection, threat intelligence, and cyberattack response services. Similar to ANET, the revisions trend for CrowdStrike’s current fiscal year has been vigorous, up 46% to $2.95 per share over the last year.
Image Source: Zacks Investment Research
Primarily earmarked for growth investors, the stock presently boasts a Style Score of ‘A’ for Growth. Consensus expectations for the current fiscal year envision a remarkable 90% earnings growth alongside a substantial 36% revenue upswing.
Image Source: Zacks Investment Research
CrowdStrike’s latest quarterly results reignited momentum, propelling the share price higher post-earnings, as the company delivered record profitability and record free cash flow. Moreover, annual recurring revenue exhibited significant growth, with a 35% improvement year-over-year. Impressively, shares soared post-earnings in consecutive releases.
Image Source: Zacks Investment Research
Vertiv
Vertiv, presently carrying a Zacks Rank #2 (Buy), enshrines itself as a global leader in designing, building, and servicing critical infrastructure that facilitates vital applications for data centers. As the sole pure-play data center infrastructure provider capable of delivering across the entire spectrum of thermal and power technologies, its shares are trading at a modest 27.1X forward earnings multiple (F1), aligning with its projected growth.
The company has posted impressive top-line expansion, achieving double-digit percentage year-over-year revenue growth rates in six consecutive quarterly releases.
Image Source: Zacks Investment Research
Vertiv’s forthcoming quarterly results, scheduled for February 21st, are anticipated to yield a 90% earnings surge and a 14% revenue expansion based on current consensus expectations. Impressively, shares have surged post-earnings in three consecutive releases.
Image Source: Zacks Investment Research
Bottom Line
While the market spotlight remains fixated on the Magnificent 7 group, it may come as a delightful surprise to learn that there have been other stocks commanding even greater gains. Vertiv VRT, CrowdStrike CRWD, and Arista Networks ANET have remarkably achieved just that, outperforming the ‘Magnificent 7’ throughout the last year. Additionally, all three stocks boast favorable Zacks Ranks, with ascending earnings estimate revisions driving their ascent.
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Arista Networks, Inc. (ANET) : Free Stock Analysis Report
CrowdStrike (CRWD) : Free Stock Analysis Report
Vertiv Holdings Co. (VRT) : 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.
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