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In the latest trading session, Arista Networks (ANET) closed at $103.34, marking a -0.12% move from the previous day. This change was narrower than the S&P 500's daily loss of 1.15%. Meanwhile, the Dow lost 0.71%, and the Nasdaq, a tech-heavy index, lost 0.08%.
Prior to today's trading, shares of the cloud networking company had gained 4.64% over the past month. This has outpaced the Computer and Technology sector's loss of 1.37% and the S&P 500's gain of 1.44% in that time.
Arista Networks will be looking to display strength as it nears its next earnings release, which is expected to be August 1, 2022. In that report, analysts expect Arista Networks to post earnings of $0.92 per share. This would mark year-over-year growth of 35.29%. Meanwhile, our latest consensus estimate is calling for revenue of $976.35 million, up 38.03% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.67 per share and revenue of $3.9 billion. These totals would mark changes of +27.87% and +32.13%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Arista Networks. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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. The Zacks Consensus EPS estimate has moved 0.19% lower within the past month. Arista Networks is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Arista Networks has a Forward P/E ratio of 28.18 right now. This valuation marks a premium compared to its industry's average Forward P/E of 15.96.
It is also worth noting that ANET currently has a PEG ratio of 1.51. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. ANET's industry had an average PEG ratio of 1.66 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 72, putting it in the top 29% 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.
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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