Arista Networks (ANET) Declines More Than Market: Some Information for Investors
Arista Networks (ANET) ended the recent trading session at $231.56, demonstrating a -1.68% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.57%. Elsewhere, the Dow gained 0.07%, while the tech-heavy Nasdaq lost 1.64%.
Prior to today's trading, shares of the cloud networking company had gained 9.49% over the past month. This has outpaced the Computer and Technology sector's gain of 4.46% and the S&P 500's gain of 4% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Arista Networks in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.70, marking a 20.57% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.53 billion, showing a 19.93% escalation compared to the year-ago quarter.
Investors should also pay attention to any latest changes in analyst estimates for Arista Networks. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Arista Networks holds a Zacks Rank of #3 (Hold).
In the context of valuation, Arista Networks is at present trading with a Forward P/E ratio of 32.74. This signifies a premium in comparison to the average Forward P/E of 18.61 for its industry.
It's also important to note that ANET currently trades at a PEG ratio of 1.66. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Communication - Components stocks are, on average, holding a PEG ratio of 2.22 based on yesterday's closing prices.
The Communication - Components industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 191, putting it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Arista Networks, Inc. (ANET) : Free Stock Analysis Report
