In the latest trading session, Arista Networks (ANET) closed at $95.09, marking a +2.97% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.94%. On the other hand, the Dow registered a gain of 0.75%, and the technology-centric Nasdaq increased by 1.52%.
Shares of the cloud networking company witnessed a loss of 4.22% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 3.9%, and the S&P 500's gain of 1.67%.
Analysts and investors alike will be keeping a close eye on the performance of Arista Networks in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.65, indicating a 25% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $2.11 billion, indicating a 24.67% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.56 per share and a revenue of $8.31 billion, representing changes of +12.78% and +18.72%, respectively, from the prior year.
Any recent changes to analyst estimates for Arista Networks should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Arista Networks presently features a Zacks Rank of #2 (Buy).
Looking at its valuation, Arista Networks is holding a Forward P/E ratio of 36.09. This represents a premium compared to its industry average Forward P/E of 27.36.
Meanwhile, ANET's PEG ratio is currently 2.44. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 2.2.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 52, putting it in the top 22% of all 250+ industries.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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