We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Arista Networks (ANET) Dips More Than Broader Markets: What You Should Know
Read MoreHide Full Article
Arista Networks (ANET - Free Report) closed at $93.74 in the latest trading session, marking a -1.25% move from the prior day. This change lagged the S&P 500's 0.88% loss on the day. Elsewhere, the Dow lost 0.82%, while the tech-heavy Nasdaq added 0.08%.
Coming into today, shares of the cloud networking company had lost 6.63% in the past month. In that same time, the Computer and Technology sector lost 7.53%, while the S&P 500 lost 8.06%.
Wall Street will be looking for positivity from Arista Networks as it approaches its next earnings report date. On that day, Arista Networks is projected to report earnings of $0.92 per share, which would represent year-over-year growth of 35.29%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $978.22 million, up 38.3% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.70 per share and revenue of $3.91 billion. These totals would mark changes of +28.92% and +32.49%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Arista Networks. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 #3 (Hold).
In terms of valuation, Arista Networks is currently trading at a Forward P/E ratio of 25.68. This represents a premium compared to its industry's average Forward P/E of 14.99.
Investors should also note that ANET has a PEG ratio of 1.63 right now. 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. Communication - Components stocks are, on average, holding a PEG ratio of 1.67 based on yesterday's closing prices.
The Communication - Components industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 42% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Arista Networks (ANET) Dips More Than Broader Markets: What You Should Know
Arista Networks (ANET - Free Report) closed at $93.74 in the latest trading session, marking a -1.25% move from the prior day. This change lagged the S&P 500's 0.88% loss on the day. Elsewhere, the Dow lost 0.82%, while the tech-heavy Nasdaq added 0.08%.
Coming into today, shares of the cloud networking company had lost 6.63% in the past month. In that same time, the Computer and Technology sector lost 7.53%, while the S&P 500 lost 8.06%.
Wall Street will be looking for positivity from Arista Networks as it approaches its next earnings report date. On that day, Arista Networks is projected to report earnings of $0.92 per share, which would represent year-over-year growth of 35.29%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $978.22 million, up 38.3% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.70 per share and revenue of $3.91 billion. These totals would mark changes of +28.92% and +32.49%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Arista Networks. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 #3 (Hold).
In terms of valuation, Arista Networks is currently trading at a Forward P/E ratio of 25.68. This represents a premium compared to its industry's average Forward P/E of 14.99.
Investors should also note that ANET has a PEG ratio of 1.63 right now. 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. Communication - Components stocks are, on average, holding a PEG ratio of 1.67 based on yesterday's closing prices.
The Communication - Components industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 42% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.