Arista Networks (ANET) ended the recent trading session at $138.37, demonstrating a -2.38% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.54%. Meanwhile, the Dow experienced a rise of 1.05%, and the technology-dominated Nasdaq saw an increase of 0.56%.
Shares of the cloud networking company witnessed a gain of 6.09% over the previous month, beating the performance of the Computer and Technology sector with its gain of 0.44%, and the S&P 500's gain of 0.74%.
The upcoming earnings release of Arista Networks will be of great interest to investors. The company's earnings report is expected on February 12, 2026. In that report, analysts expect Arista Networks to post earnings of $0.75 per share. This would mark year-over-year growth of 15.38%. In the meantime, our current consensus estimate forecasts the revenue to be $2.37 billion, indicating a 22.95% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $2.88 per share and a revenue of $8.87 billion, demonstrating changes of +26.87% and 0%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Arista Networks. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Arista Networks is currently a Zacks Rank #2 (Buy).
Investors should also note Arista Networks's current valuation metrics, including its Forward P/E ratio of 42.95. This indicates a premium in contrast to its industry's Forward P/E of 22.53.
It is also worth noting that ANET currently has a PEG ratio of 2.14. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Internet - Software industry stood at 1.29 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Arista Networks, Inc. (ANET): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
