Arista Networks (ANET) ended the recent trading session at $147.43, demonstrating a -4.33% change from the preceding day's closing price. This change lagged the S&P 500's 1.56% gain on the day. On the other hand, the Dow registered a gain of 1.29%, and the technology-centric Nasdaq increased by 2.21%.
Shares of the cloud networking company have appreciated by 10.55% over the course of the past month, outperforming the Computer and Technology sector's gain of 1.06%, and the S&P 500's gain of 0.41%.
Analysts and investors alike will be keeping a close eye on the performance of Arista Networks in its upcoming earnings disclosure. The company's earnings report is set to go public on November 4, 2025. The company is expected to report EPS of $0.72, up 20% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $2.26 billion, indicating a 24.73% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.81 per share and revenue of $8.78 billion, indicating changes of +23.79% and +25.4%, 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. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Arista Networks presently features a Zacks Rank of #3 (Hold).
Investors should also note Arista Networks's current valuation metrics, including its Forward P/E ratio of 54.78. This denotes a premium relative to the industry average Forward P/E of 28.54.
We can additionally observe that ANET currently boasts a PEG ratio of 2.92. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 2.09.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 77, finds itself in the top 32% echelons 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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