Arista Networks (ANET) Declines More Than Market: Some Information for Investors
The latest trading session saw Arista Networks (ANET) ending at $245.20, denoting a -0.26% adjustment from its last day's close. This change lagged the S&P 500's 0.15% loss on the day. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, added 0.09%.
The the stock of cloud networking company has risen by 8.51% in the past month, leading the Computer and Technology sector's gain of 1.19% and the S&P 500's gain of 3.5%.
Investors will be eagerly watching for the performance of Arista Networks in its upcoming earnings disclosure. In that report, analysts expect Arista Networks to post earnings of $1.70 per share. This would mark year-over-year growth of 20.57%. Simultaneously, our latest consensus estimate expects the revenue to be $1.53 billion, showing a 19.93% escalation compared to the year-ago quarter.
It is also important to note the recent changes to analyst estimates for Arista Networks. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Arista Networks is currently a Zacks Rank #2 (Buy).
Looking at valuation, Arista Networks is presently trading at a Forward P/E ratio of 34.18. This represents a premium compared to its industry's average Forward P/E of 18.43.
We can additionally observe that ANET currently boasts a PEG ratio of 1.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Communication - Components industry had an average PEG ratio of 2.16 as trading concluded yesterday.
The Communication - Components industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 156, positioning it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Arista Networks, Inc. (ANET) : Free Stock Analysis Report
