Arista Networks (ANET) Rises As Market Takes a Dip: Key Facts
In the latest market close, Arista Networks (ANET) reached $306.42, with a +0.6% movement compared to the previous day. The stock exceeded the S&P 500, which registered a loss of 0.14% for the day. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq added 0.17%.
Shares of the cloud networking company witnessed a gain of 13.34% over the previous month, beating the performance of the Computer and Technology sector with its gain of 6.81% and the S&P 500's gain of 5.34%.
Analysts and investors alike will be keeping a close eye on the performance of Arista Networks in its upcoming earnings disclosure. The company is expected to report EPS of $1.71, up 19.58% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $1.54 billion, reflecting a 14.19% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.41 per share and revenue of $6.54 billion, indicating changes of +6.77% and +11.55%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Arista Networks should also be noted by investors. These revisions help to show the ever-changing nature of near-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain 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).
Valuation is also important, so investors should note that Arista Networks has a Forward P/E ratio of 41.12 right now. This represents a premium compared to its industry's average Forward P/E of 19.35.
We can additionally observe that ANET currently boasts a PEG ratio of 2.35. 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. Communication - Components stocks are, on average, holding a PEG ratio of 1.55 based on yesterday's closing prices.
The Communication - Components industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 61, finds itself in the top 25% echelons 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.
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Arista Networks, Inc. (ANET) : Free Stock Analysis Report
