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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 at $138.40 in the latest trading session, marking a -0.91% move from the prior day. This change lagged the S&P 500's daily gain of 0.51%. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq gained 0.1%.
Prior to today's trading, shares of the cloud networking company had gained 15.56% over the past month. This has outpaced the Computer and Technology sector's gain of 4.34% and the S&P 500's gain of 5.51% in that time.
Investors will be hoping for strength from Arista Networks as it approaches its next earnings release. The company is expected to report EPS of $0.81, up 28.57% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $854.05 million, up 27.94% from the year-ago period.
ANET's full-year Zacks Consensus Estimates are calling for earnings of $3.69 per share and revenue of $3.84 billion. These results would represent year-over-year changes of +28.57% and +30.42%, respectively.
Any recent changes to analyst estimates for Arista Networks should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 remained stagnant within the past month. Arista Networks currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Arista Networks has a Forward P/E ratio of 37.89 right now. Its industry sports an average Forward P/E of 17.96, so we one might conclude that Arista Networks is trading at a premium comparatively.
Investors should also note that ANET has a PEG ratio of 2.47 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Communication - Components was holding an average PEG ratio of 1.8 at yesterday's closing price.
The Communication - Components industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 99, putting it in the top 39% 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) Stock Sinks As Market Gains: What You Should Know
Arista Networks (ANET - Free Report) closed at $138.40 in the latest trading session, marking a -0.91% move from the prior day. This change lagged the S&P 500's daily gain of 0.51%. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq gained 0.1%.
Prior to today's trading, shares of the cloud networking company had gained 15.56% over the past month. This has outpaced the Computer and Technology sector's gain of 4.34% and the S&P 500's gain of 5.51% in that time.
Investors will be hoping for strength from Arista Networks as it approaches its next earnings release. The company is expected to report EPS of $0.81, up 28.57% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $854.05 million, up 27.94% from the year-ago period.
ANET's full-year Zacks Consensus Estimates are calling for earnings of $3.69 per share and revenue of $3.84 billion. These results would represent year-over-year changes of +28.57% and +30.42%, respectively.
Any recent changes to analyst estimates for Arista Networks should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 remained stagnant within the past month. Arista Networks currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Arista Networks has a Forward P/E ratio of 37.89 right now. Its industry sports an average Forward P/E of 17.96, so we one might conclude that Arista Networks is trading at a premium comparatively.
Investors should also note that ANET has a PEG ratio of 2.47 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Communication - Components was holding an average PEG ratio of 1.8 at yesterday's closing price.
The Communication - Components industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 99, putting it in the top 39% 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.