Arista Networks (ANET) closed the most recent trading day at $156.81, moving +1.94% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 1.23%. On the other hand, the Dow registered a gain of 0.72%, and the technology-centric Nasdaq increased by 1.86%.
Prior to today's trading, shares of the cloud networking company had gained 7.94% outpaced the Computer and Technology sector's gain of 3.49% and the S&P 500's gain of 2.45%.
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 forecasted to report an EPS of $0.72, showcasing a 20% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $2.26 billion, reflecting a 24.73% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.81 per share and revenue of $8.78 billion. These totals would mark changes of +23.79% and +25.4%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Arista Networks. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. Arista Networks is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Arista Networks is currently exchanging hands at a Forward P/E ratio of 54.69. This denotes a premium relative to the industry average Forward P/E of 30.18.
Meanwhile, ANET's PEG ratio is currently 2.92. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 2.14 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 79, this industry ranks in the top 32% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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