Arista Networks (ANET) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Arista Networks (ANET) closed at $229.12, marking a -0.28% move from the previous day. This change lagged the S&P 500's 0.04% loss on the day. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq added 0.16%.
Heading into today, shares of the cloud networking company had lost 2.89% over the past month, outpacing the Computer and Technology sector's loss of 4.01% and the S&P 500's loss of 4.99% in that time.
Investors will be hoping for strength from ANET as it approaches its next earnings release, which is expected to be February 21, 2019. On that day, ANET is projected to report earnings of $2.04 per share, which would represent year-over-year growth of 19.3%. Meanwhile, our latest consensus estimate is calling for revenue of $589.69 million, up 26.04% from the prior-year quarter.
ANET's full-year Zacks Consensus Estimates are calling for earnings of $7.73 per share and revenue of $2.14 billion. These results would represent year-over-year changes of +37.79% and +29.93%, respectively.
Investors might also notice recent changes to analyst estimates for ANET. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. ANET currently has a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, ANET is holding a Forward P/E ratio of 29.72. For comparison, its industry has an average Forward P/E of 18.63, which means ANET is trading at a premium to the group.
We can also see that ANET currently has a PEG ratio of 1.37. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Communication - Components stocks are, on average, holding a PEG ratio of 1.6 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 73, putting it in the top 28% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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