Arista Networks (ANET) Increases Despite Market Slip: Here's What You Need to Know
Arista Networks (ANET) closed the latest trading day at $253.26, indicating a +0.49% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily loss of 0.37%. Meanwhile, the Dow experienced a drop of 0.62%, and the technology-dominated Nasdaq saw a decrease of 0.19%.
The the stock of cloud networking company has risen by 5.54% in the past month, leading the Computer and Technology sector's gain of 1.22% and the S&P 500's gain of 1.56%.
The upcoming earnings release of Arista Networks will be of great interest to investors. The company's earnings report is expected on February 12, 2024. 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 19.98% escalation compared to the year-ago quarter.
Investors should also note any recent changes to analyst estimates for Arista Networks. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, there's been a 0.31% rise in the Zacks Consensus EPS estimate. Currently, Arista Networks is carrying a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Arista Networks is presently being traded at a Forward P/E ratio of 34.95. For comparison, its industry has an average Forward P/E of 17.98, which means Arista Networks is trading at a premium to the group.
It is also worth noting that ANET currently has a PEG ratio of 1.77. 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. The Communication - Components industry currently had an average PEG ratio of 1.82 as of yesterday's close.
The Communication - Components industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 107, this industry ranks in the top 43% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ANET in the coming trading sessions, be sure to utilize Zacks.com.
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Arista Networks, Inc. (ANET) : Free Stock Analysis Report
