Arista Networks (ANET) Dips More Than Broader Market: What You Should Know
Arista Networks (ANET) closed at $233.16 in the latest trading session, marking a -1.5% move from the prior day. This change lagged the S&P 500's 1.47% loss on the day. At the same time, the Dow lost 1.27%, and the tech-heavy Nasdaq lost 1.5%.
Heading into today, shares of the cloud networking company had gained 9.93% over the past month, outpacing the Computer and Technology sector's gain of 4.98% and the S&P 500's gain of 5.77% in that time.
Market participants will be closely following the financial results of Arista Networks in its upcoming release. The company is predicted to post an EPS of $1.70, indicating a 20.57% growth compared to the equivalent quarter last 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.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.55 per share and revenue of $5.85 billion, which would represent changes of +43.01% and +33.51%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Arista Networks. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Arista Networks presently features a Zacks Rank of #2 (Buy).
Digging into valuation, Arista Networks currently has a Forward P/E ratio of 36.14. This expresses a premium compared to the average Forward P/E of 18.48 of its industry.
It is also worth noting that ANET currently has a PEG ratio of 1.83. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Communication - Components industry stood at 1.83 at the close of the market yesterday.
The Communication - Components industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 190, which puts 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Arista Networks, Inc. (ANET) : Free Stock Analysis Report
