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Arista Networks (ANET) Gains But Lags Market: What You Should Know
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In the latest trading session, Arista Networks (ANET - Free Report) closed at $103.91, marking a +0.25% move from the previous day. The stock lagged the S&P 500's daily gain of 2.6%.
Heading into today, shares of the cloud networking company had lost 15.22% over the past month, outpacing the Computer and Technology sector's loss of 15.89% and lagging the S&P 500's loss of 12.9% in that time.
Wall Street will be looking for positivity from Arista Networks as it approaches its next earnings report date. This is expected to be October 31, 2022. On that day, Arista Networks is projected to report earnings of $1.05 per share, which would represent year-over-year growth of 41.89%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.06 billion, up 41.51% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.04 per share and revenue of $4.09 billion. These totals would mark changes of +40.77% and +38.64%, respectively, from last year.
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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Arista Networks is holding a Zacks Rank of #1 (Strong Buy) right now.
Digging into valuation, Arista Networks currently has a Forward P/E ratio of 25.68. For comparison, its industry has an average Forward P/E of 16.65, which means Arista Networks is trading at a premium to the group.
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. The Communication - Components was holding an average PEG ratio of 1.63 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 34, putting it in the top 14% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Arista Networks (ANET) Gains But Lags Market: What You Should Know
In the latest trading session, Arista Networks (ANET - Free Report) closed at $103.91, marking a +0.25% move from the previous day. The stock lagged the S&P 500's daily gain of 2.6%.
Heading into today, shares of the cloud networking company had lost 15.22% over the past month, outpacing the Computer and Technology sector's loss of 15.89% and lagging the S&P 500's loss of 12.9% in that time.
Wall Street will be looking for positivity from Arista Networks as it approaches its next earnings report date. This is expected to be October 31, 2022. On that day, Arista Networks is projected to report earnings of $1.05 per share, which would represent year-over-year growth of 41.89%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.06 billion, up 41.51% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.04 per share and revenue of $4.09 billion. These totals would mark changes of +40.77% and +38.64%, respectively, from last year.
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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Arista Networks is holding a Zacks Rank of #1 (Strong Buy) right now.
Digging into valuation, Arista Networks currently has a Forward P/E ratio of 25.68. For comparison, its industry has an average Forward P/E of 16.65, which means Arista Networks is trading at a premium to the group.
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. The Communication - Components was holding an average PEG ratio of 1.63 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 34, putting it in the top 14% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.