HOW TO PLAY IT

Old telecommunication networks, characterized by copper line strung between wooden poles, are slowly disappearing. Arista

Networks makes the equipment for what comes next: so ware-de ned networks. These are robust, scalable networks that support innovative technologies like 5G wireless, digital streaming media, remote work and hyperscale cloud computing. Supplying these markets is a booming business, and lucrative. Arista reported in August that second-quarter revenue rose to $1.05 billion, up 48% year over year. The gross margin was 61.9%. Shares of the Santa Clara, California–based company could trade to $155 within 12 months, a gain of 24% from the current price of $124.75.

Jon D. Markman is president of Markman Capital Insight and editor of Fast Forward Investing.