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Arista Networks (ANET) Stock Sinks As Market Gains: What You Should Know
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Arista Networks (ANET - Free Report) closed the most recent trading day at $142.24, moving -1.05% from the previous trading session. This change lagged the S&P 500's 0.64% gain on the day. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq added 0.46%.
Heading into today, shares of the cloud networking company had gained 18.61% over the past month, outpacing the Computer and Technology sector's gain of 1.46% and the S&P 500's gain of 4.56% in that time.
Investors will be hoping for strength from Arista Networks as it approaches its next earnings release. On that day, Arista Networks is projected to report earnings of $0.68 per share, which would represent year-over-year growth of 9.68%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $789.04 million, up 21.67% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Arista Networks. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Arista Networks is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Arista Networks is holding a Forward P/E ratio of 51.63. This valuation marks a premium compared to its industry's average Forward P/E of 20.28.
It is also worth noting that ANET currently has a PEG ratio of 3.09. 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. ANET's industry had an average PEG ratio of 1.96 as of yesterday's close.
The Communication - Components industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 94, putting it in the top 37% 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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Arista Networks (ANET) Stock Sinks As Market Gains: What You Should Know
Arista Networks (ANET - Free Report) closed the most recent trading day at $142.24, moving -1.05% from the previous trading session. This change lagged the S&P 500's 0.64% gain on the day. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq added 0.46%.
Heading into today, shares of the cloud networking company had gained 18.61% over the past month, outpacing the Computer and Technology sector's gain of 1.46% and the S&P 500's gain of 4.56% in that time.
Investors will be hoping for strength from Arista Networks as it approaches its next earnings release. On that day, Arista Networks is projected to report earnings of $0.68 per share, which would represent year-over-year growth of 9.68%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $789.04 million, up 21.67% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Arista Networks. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Arista Networks is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Arista Networks is holding a Forward P/E ratio of 51.63. This valuation marks a premium compared to its industry's average Forward P/E of 20.28.
It is also worth noting that ANET currently has a PEG ratio of 3.09. 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. ANET's industry had an average PEG ratio of 1.96 as of yesterday's close.
The Communication - Components industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 94, putting it in the top 37% 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 follow all of these stock-moving metrics, and many more, on Zacks.com.