Arista Networks (ANET) closed the most recent trading day at $109.78, moving -1.64% from the previous trading session. This change lagged the S&P 500's daily gain of 0.06%. Meanwhile, the Dow experienced a rise of 0.41%, and the technology-dominated Nasdaq saw a decrease of 0.39%.
The cloud networking company's shares have seen an increase of 21.38% over the last month, surpassing the Computer and Technology sector's gain of 9.6% and the S&P 500's gain of 5.88%.
The upcoming earnings release of Arista Networks will be of great interest to investors. The company's earnings report is expected on August 5, 2025. The company is expected to report EPS of $0.65, up 25% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $2.11 billion, reflecting a 24.61% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.57 per share and revenue of $8.34 billion, which would represent changes of +13.22% and +19.05%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Arista Networks. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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 0.66% higher within the past month. As of now, Arista Networks holds a Zacks Rank of #3 (Hold).
Looking at its valuation, Arista Networks is holding a Forward P/E ratio of 43.43. Its industry sports an average Forward P/E of 29.18, so one might conclude that Arista Networks is trading at a premium comparatively.
It's also important to note that ANET currently trades at a PEG ratio of 2.93. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 2.18 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 32% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Arista Networks, Inc. (ANET): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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