Arista Networks (ANET) closed the latest trading day at $78.31, indicating a +0.51% change from the previous session's end. This move outpaced the S&P 500's daily gain of 0.06%. Meanwhile, the Dow gained 0.28%, and the Nasdaq, a tech-heavy index, lost 0.1%.
Coming into today, shares of the cloud networking company had lost 0.04% in the past month. In that same time, the Computer and Technology sector lost 5.52%, while the S&P 500 lost 4.29%.
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 May 6, 2025. The company's upcoming EPS is projected at $0.59, signifying a 18% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.96 billion, up 24.71% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.47 per share and a revenue of $8.28 billion, signifying shifts of +8.81% and +18.22%, respectively, from the last year.
Investors should also note any recent changes to 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 company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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. The Zacks Consensus EPS estimate has moved 0.3% lower within the past month. Right now, Arista Networks possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Arista Networks is currently being traded at a Forward P/E ratio of 31.6. This represents a premium compared to its industry's average Forward P/E of 26.08.
We can also see that ANET currently has a PEG ratio of 2.19. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. ANET's industry had an average PEG ratio of 2.19 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 90, finds itself in the top 37% 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.
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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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