Arista Networks (ANET) closed the most recent trading day at $242.06, moving +1.45% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.97%. Meanwhile, the Dow gained 1.35%, and the Nasdaq, a tech-heavy index, added 1.39%.
Coming into today, shares of the cloud networking company had lost 2.59% in the past month. In that same time, the Computer and Technology sector lost 1.04%, while the S&P 500 gained 0.64%.
Investors will be hoping for strength from ANET as it approaches its next earnings release. The company is expected to report EPS of $2.21, up 14.51% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $606.67 million, up 16.7% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.35 per share and revenue of $2.55 billion, which would represent changes of +17.46% and +18.39%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for ANET. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.37% lower. ANET is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, ANET is holding a Forward P/E ratio of 25.51. This represents a no noticeable deviation compared to its industry's average Forward P/E of 25.51.
It is also worth noting that ANET currently has a PEG ratio of 1.35. 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 was holding an average PEG ratio of 1.58 at yesterday's closing price.
The Communication - Components industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 154, putting it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Arista Networks, Inc. (ANET) : Free Stock Analysis Report
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