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Arista Networks (ANET) Outpaces Stock Market Gains: What You Should Know
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Arista Networks (ANET - Free Report) closed the most recent trading day at $126, moving +1.46% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.24%. At the same time, the Dow added 1.23%, and the tech-heavy Nasdaq gained 0.15%.
Heading into today, shares of the cloud networking company had lost 6.23% over the past month, lagging the Computer and Technology sector's loss of 5.9% and the S&P 500's loss of 2.45% in that time.
Arista Networks will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.80, up 26.98% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $854.05 million, up 27.94% from the year-ago period.
ANET's full-year Zacks Consensus Estimates are calling for earnings of $3.68 per share and revenue of $3.84 billion. These results would represent year-over-year changes of +28.22% and +30.42%, respectively.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 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. The Zacks Consensus EPS estimate has moved 3.87% higher within the past month. Arista Networks currently has a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Arista Networks currently has a Forward P/E ratio of 33.73. This represents a premium compared to its industry's average Forward P/E of 19.41.
Investors should also note that ANET has a PEG ratio of 2.2 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Communication - Components industry currently had an average PEG ratio of 1.77 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 85, putting it in the top 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow ANET in the coming trading sessions, be sure to utilize Zacks.com.
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Arista Networks (ANET) Outpaces Stock Market Gains: What You Should Know
Arista Networks (ANET - Free Report) closed the most recent trading day at $126, moving +1.46% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.24%. At the same time, the Dow added 1.23%, and the tech-heavy Nasdaq gained 0.15%.
Heading into today, shares of the cloud networking company had lost 6.23% over the past month, lagging the Computer and Technology sector's loss of 5.9% and the S&P 500's loss of 2.45% in that time.
Arista Networks will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.80, up 26.98% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $854.05 million, up 27.94% from the year-ago period.
ANET's full-year Zacks Consensus Estimates are calling for earnings of $3.68 per share and revenue of $3.84 billion. These results would represent year-over-year changes of +28.22% and +30.42%, respectively.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 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. The Zacks Consensus EPS estimate has moved 3.87% higher within the past month. Arista Networks currently has a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Arista Networks currently has a Forward P/E ratio of 33.73. This represents a premium compared to its industry's average Forward P/E of 19.41.
Investors should also note that ANET has a PEG ratio of 2.2 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Communication - Components industry currently had an average PEG ratio of 1.77 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 85, putting it in the top 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow ANET in the coming trading sessions, be sure to utilize Zacks.com.