Arista Networks (ANET) ended the recent trading session at $69.47, demonstrating a +1.91% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 1.57%. Meanwhile, the Dow lost 0.84%, and the Nasdaq, a tech-heavy index, lost 2.15%.
Prior to today's trading, shares of the cloud networking company had lost 12.11% over the past month. This has was narrower than the Computer and Technology sector's loss of 16.01% and the S&P 500's loss of 12.16% in that time.
Investors will be eagerly watching for the performance of Arista Networks in its upcoming earnings disclosure. The company is expected to report EPS of $0.60, up 20% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $1.96 billion, indicating a 24.71% upward movement from the same quarter last year.
ANET's full-year Zacks Consensus Estimates are calling for earnings of $2.56 per share and revenue of $8.27 billion. These results would represent year-over-year changes of +12.78% and +18.08%, respectively.
Any recent changes to analyst estimates for Arista Networks should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Arista Networks is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Arista Networks is presently being traded at a Forward P/E ratio of 26.66. This signifies a premium in comparison to the average Forward P/E of 23.49 for its industry.
It is also worth noting that ANET currently has a PEG ratio of 1.85. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.8.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 78, positioning it in the top 32% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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