Image Source: Unsplash

Able to impressively exceed their Q3 expectations, a few top-rated tech stocks are standing out in what has been an exciting trading week.

With markets seeing a post-election boost and the Fed implementing another rate cut of 25 basis points, here are two intriguing tech stocks to consider after posting favorable Q3 results on Thursday.

Arista Networks - ANET [Zacks Rank #1 (Strong Buy)]
 

Cloud provider Arista Networks (ANET - Free Report)  is one of the hottest tech stocks soaring over +70% year to date and sitting on +200% gains in the last two years.

Down -7% on Friday, the post-earnings selloff in ANET appears to be some profit taking and may lead to better buying opportunities. To that point, Arista has exceeded earnings expectations in every quarter since the company went public in 2014.

Continuing this astonishing streak, Arista’s Q3 EPS of $2.40 comfortably exceeded expectations of $2.09 by 15%. Year over year, Arista’s bottom line stretched 31% from EPS of $1.83 in the comparative quarter. 

Driven by its AI capabilities, robust demand for Arista’s client to cloud networking solutions led to Q3 sales of $1.81 billion, a 20% increase from a year ago. Beating Q3 sales estimates of $1.75 billion, Arista has surpassed top line expectations for 20 consecutive quarters.

Furthermore, Arista announced a collaboration with Meta (META - Free Report)  to expand its AI offerings which could be a further catalyst to the company’s continued growth and investor sentiment.  

Image Source: Zacks Investment Research

Fortinet - FTNT [Zacks Rank #2 (Buy)]
 

Providing network security solutions, Fortinet’s (FTNT - Free Report)  stock has spiked +8% in today’s trading session after Q3 EPS of $0.63 crushed estimates of $0.51 a share by 23%. This was a 53% spike from $0.41 a share in the prior-year quarter.

Sales of $1.5 billion edged estimates of $1.47 billion and were up 13% YoY. Investors are also applauding Fortinet’s achievement of record gross margins (83.2%) and operating margins (36.1%) which led to the company raising its revenue and operating margin guidance.

Image Source: Zacks Investment Research

Bottom Line
 

Keeping in mind that a lower inflationary environment can be very favorable for tech companies, Arista Networks, and Fortinet are certainly two stocks to keep an eye on after their strong Q3 results.

More By This Author: