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In the latest trading session, Arista Networks (ANET) closed at $117.95, marking a +0.86% move from the previous day. This move outpaced the S&P 500's daily loss of 0.15%. Meanwhile, the Dow lost 0.38%, and the Nasdaq, a tech-heavy index, lost 0.05%.
Heading into today, shares of the cloud networking company had lost 19.28% over the past month, lagging the Computer and Technology sector's loss of 14.1% and the S&P 500's loss of 7.66% in that time.
Wall Street will be looking for positivity from Arista Networks as it approaches its next earnings report date. This is expected to be February 14, 2022. On that day, Arista Networks is projected to report earnings of $0.74 per share, which would represent year-over-year growth of 19.35%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $790.58 million, up 21.91% from the year-ago period.
Any recent changes to analyst estimates for Arista Networks should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.18% higher. Arista Networks is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Arista Networks has a Forward P/E ratio of 33.15 right now. Its industry sports an average Forward P/E of 17.82, so we one might conclude that Arista Networks is trading at a premium comparatively.
It is also worth noting that ANET currently has a PEG ratio of 1.98. 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. ANET's industry had an average PEG ratio of 1.36 as of yesterday's close.
The Communication - Components industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 96, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Arista Networks, Inc. (ANET) : Free Stock Analysis Report
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