Arista Networks (ANET) closed the most recent trading day at $117.55, moving +2.86% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.02%. Elsewhere, the Dow saw a downswing of 0.14%, while the tech-heavy Nasdaq appreciated by 0.33%.
The cloud networking company's shares have seen an increase of 14.98% over the last month, surpassing the Computer and Technology sector's gain of 6.31% and the S&P 500's gain of 4.93%.
Market participants will be closely following the financial results of Arista Networks in its upcoming release. The company plans to announce its earnings on August 5, 2025. The company is expected to report EPS of $0.65, up 25% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $2.11 billion, indicating a 25% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.58 per share and a revenue of $8.35 billion, signifying shifts of +13.66% and +19.28%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Arista Networks. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 past month, there's been a 0.91% rise in the Zacks Consensus EPS estimate. Arista Networks presently features a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Arista Networks is presently being traded at a Forward P/E ratio of 44.38. Its industry sports an average Forward P/E of 29.26, so one might conclude that Arista Networks is trading at a premium comparatively.
It is also worth noting that ANET currently has a PEG ratio of 3. 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 Internet - Software industry currently had an average PEG ratio of 2.21 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 78, finds itself in the top 32% echelons of all 250+ industries.
The Zacks Industry Rank is ordered 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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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