Arista Networks (ANET) ended the recent trading session at $94.94, demonstrating a +0.47% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.01%. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq added 0.32%.
Shares of the cloud networking company have appreciated by 4.11% over the course of the past month, underperforming the Computer and Technology sector's gain of 7.95% and the S&P 500's gain of 5.2%.
Analysts and investors alike will be keeping a close eye on the performance of Arista Networks in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.65, marking a 25% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $2.11 billion, showing a 24.67% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $2.56 per share and a revenue of $8.31 billion, demonstrating changes of +12.78% and +18.72%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Arista Networks. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.46% increase. At present, Arista Networks boasts a Zacks Rank of #2 (Buy).
Digging into valuation, Arista Networks currently has a Forward P/E ratio of 36.94. This represents a premium compared to its industry's average Forward P/E of 29.52.
We can additionally observe that ANET currently boasts a PEG ratio of 2.49. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 2.31.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 61, positioning it in the top 25% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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