Arista Networks (ANET) Stock Moves -0.05%: What You Should Know
The most recent trading session ended with Arista Networks (ANET) standing at $272.97, reflecting a -0.05% shift from the previouse trading day's closing. This move was narrower than the S&P 500's daily loss of 0.32%. Elsewhere, the Dow lost 0.71%, while the tech-heavy Nasdaq lost 0.2%.
Shares of the cloud networking company witnessed a gain of 18.27% over the previous month, beating the performance of the Computer and Technology sector with its gain of 9.33% and the S&P 500's gain of 4.59%.
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. In that report, analysts expect Arista Networks to post earnings of $1.70 per share. This would mark year-over-year growth of 20.57%. Simultaneously, our latest consensus estimate expects the revenue to be $1.53 billion, showing a 19.98% escalation compared to the year-ago quarter.
Any recent changes to analyst estimates for Arista Networks should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.31% increase. Arista Networks is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Arista Networks is presently trading at a Forward P/E ratio of 37.87. This valuation marks a premium compared to its industry's average Forward P/E of 18.91.
Investors should also note that ANET has a PEG ratio of 1.92 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Communication - Components was holding an average PEG ratio of 1.89 at yesterday's closing price.
The Communication - Components industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 36% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Arista Networks, Inc. (ANET) : Free Stock Analysis Report
