Zacks Investment Ideas feature highlights: Tesla (TSLA), Micron (MU) and Arista Networks (ANET)

For Immediate ReleaseChicago, IL – November 18, 2024 – Today, Zacks Investment Ideas feature highlights Tesla TSLA, Micron MU and Arista Networks ANET.These 3 Quarterly Reports Positively Shocked Investors: TSLA, MU, ANETWe’re nearing the end of the 2024 Q3 cycle, which has brought many positive surprises as it usually does. S&P 500 earnings are forecasted to be positive yet again, continuing the recent growth streak we’ve enjoyed over recent periods.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Concerning positivity, several companies, including Tesla, Micron and Arista Networks, all posted results that caused shares to see bullish movement post-earnings. Let’s take a closer look at each quarterly release.Tesla's Profitability RecoversThe critical metric for Tesla that has commonly dictated price swings is its EV production/delivery numbers, but margins have become the clear focus as of late. Concerning EV production/deliveries, Tesla delivered roughly 463k EVs and produced nearly 470k throughout the period.While the EV numbers are important, the real highlight of the release was margin expansion, with the company’s gross margin expanding nicely to 19.8% vs. a 17.9% print in the same period last year. As shown below, margins have finally begun recovering.While margins remain well below highs set in 2022, the recent uptick is undoubtedly encouraging, further underpinned by the fact that Tesla reported its lowest-ever level of cost of goods sold (COGS) per vehicle throughout the period.The favorable commentary surrounding profitability and results vaulted the stock into the highly-coveted Zacks Rank #1 (Strong Buy), with analysts revising their EPS expectations across the board following the release.Overall, the stock’s current momentum is undeniable, partly boosted by the recent U.S. election. But it remains the prime selection for those seeking EV exposure, and its current favorable Zacks Rank alludes to further near-term gains.Micron Benefits from AIMicron helped set the tone for technology stocks overall in Q3 in its release in late September, with the company enjoying a massive 181% spike in EPS on 93% higher sales. The growth here is massive, underpinned by robust demand for the company’s data center products.The results overall again confirm that the AI frenzy is here to stay, with Micron also forecasting record profitability for its next quarterly print. The company’s top line has recovered in a big way over recent quarters.The stock has given up the bulk of its post-earnings gains amid broader semiconductor weakness as of late, but the story overall remains positive. The valuation picture isn’t overly stretched, with the current 2.8X forward 12-month price-to-sales ratio beneath the 2.9X five-year median and five-year highs of 4.9X.ANET Sales Continue GrowingArista Networks has also been caught up in the AI frenzy, as the company is an industry leader in data-driven, client-to-cloud networking for large data centers, campus, and routing environments. The stock sports a favorable Zacks Rank #2 (Buy), with its earnings outlook brightening following its latest release.Jayshree Ullal, CEO, on the results:‘Arista remains at the forefront of next generation centers of data across client-to-cloud and AI focused locations.’ The growing AI landscape has benefited the company’s top line in a big way, with the company posting sequential revenue growth in each of its last ten periods.Like MU, shares have given up the bulk of post-earnings gains, perhaps a reflection of profit-taking after a massive run year-to-date.Bottom LineThe 2024 Q3 earnings cycle is nearing its end, with just a handful of S&P 500 companies yet to report quarterly results.And throughout the period, these companies all posted results that pleased investors.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Micron Technology, Inc. (MU): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Arista Networks, Inc. (ANET): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks