Adding to 2 Holdings After Earnings, PMI Updates
Customer spending plans drive one move, while the domestic manufacturing economy does the other.
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| Symbol | Transaction Type | # Shares Traded | Recent Price $ | Shares Owned After Trade | % Portfolio |
|---|---|---|---|---|---|
| ANET | Buy | 100 | 173.22 | 1,200 | 3.5 |
| PCAR | Buy | 135 | 107.16 | 1,470 | 2.6 |
After you receive this alert, the Portfolio will make the following trades:
Buy 100 shares of Arista Networks (ANET) at or near $174. Following the trade, the Portfolio will own 1,300 ANET shares, roughly 3.5% of its assets.
Buy 135 shares of Paccar (PCAR) at or near $107.50. Following the trade, the Portfolio will own 1,470 PCAR shares, roughly 2.65% of its assets.Â
Arista Networks
Following the sharp drop in ANET shares to near $175 from their recent high above $215, we are adding the Portfolio’s position as long-term spending plans for its two largest customers, Microsoft (MSFT) and Meta (META), become clearer. In Friday morning’s opening comments, we discussed multi-year spending commitments in place at Meta revealed in its latest 10Q filing as well as stated plans by management to grow capacity to serve 1 billion Muse users over the next several years.
Paired with Microsoft’s plan to build its data center capacity to about 38 gigawatts by 2032, tripling its current footprint, the demand outlook for Arista remains bright. Let’s not forget SpaceX’s (SPCX) expansion plans for the current quarter and next year, nor should we forget SpaceX is an Arista client as is Google (GOOGL). More reasons to look at the recent sell-off in ANET share as an opportunity to build up our position size.
It doesn’t hurt either that, when Nokia (NOK) reported on Thursday, it shared that demand for its networks segment exceeded supply with management noting AI and cloud were the fastest growing customer group. We will, however, use Nokia’s comment about supply chain pressure to leave some room to maneuver further with our ANET position size should that longer-term demand picture be tempered by near-term component issues like we saw earlier this year.
Paccar
Earlier this week, we shared that we would be eyeing today’s October Flash PMI report and what it had to say about the velocity of the manufacturing economy. As we discussed in our recap of that alert, that part of the economy showed elevated levels of production and new order growth per S&P’s findings, registering a “sustained strong expansion.”
When AB Volvo (VOLVY) reported its Q3 2026 results earlier on Friday, its North America truck deliveries increased by 42% in the quarter and it sees industry retail sales strengthening further in 2027 following sold out capacity for 2026. Management also reaffirmed the need to replace the aging fleet and pegs 2027 near 300,000 units, up from 265,000 this year.
That need to replace aging equipment along with accelerated deprecation under the One Big Beautiful Bill and gains in fuel efficiency suggest that fleet appetites for new equipment remain in place. When Ryder (R) reported its quarterly results this week, the management team commented the strength it is seeing its business should translate “to more fleet additions as we move through the cycle.” During its earning call on Thursday, Kight-Swift-Transportation Holdings (KNX) shared it has grown its truck fleet, which is one of the largest, by 3.5% since mid-Q2 2026. It also forecasts operating income to improve in the current quarter, which bodes well for further fleet expansion in the coming quarters. As more trucking companies report, we’ll be listening for what the management teams have to say about capex and fleet expansion plans.
Housekeeping
As we make these trades, we will maintain our ANET checkpoint at $145 and reset the one for PCAR shares to $95.
After the trades, the Portfolio’s cash position will be roughly 10% of its assets. We’ll continue to look for compelling places to put cash to work, but as the earning season heats up and with the likelihood of some incrementally hawkish comments from Federal Reserve Chair Warsh next week, we’re inclined to take things day by day.
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(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade’s executed price here. Be sure to toggle the chart to sort by Purchase Date.)
At the time of publication, TheStreet Pro Portfolio was long ANET, GOOGL, META, MSFT and PCAR.
