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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 $112.63, moving +1.71% from the previous trading session. The stock outpaced the S&P 500's daily gain of 1.63%. Elsewhere, the Dow gained 1.07%, while the tech-heavy Nasdaq added 0.3%.
Prior to today's trading, shares of the cloud networking company had gained 1.5% over the past month. This has outpaced the Computer and Technology sector's gain of 0.92% and lagged the S&P 500's gain of 2.94% 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 41.62% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.04 per share and revenue of $4.09 billion, which would represent changes of +40.77% and +38.62%, respectively, from the prior year.
Any recent changes to analyst estimates for Arista Networks should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 0.03% lower. Arista Networks currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Arista Networks has a Forward P/E ratio of 27.44 right now. Its industry sports an average Forward P/E of 16.65, so we one might conclude that Arista Networks is trading at a premium comparatively.
Also, we should mention that ANET has a PEG ratio of 1.75. 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. Communication - Components stocks are, on average, holding a PEG ratio of 1.75 based on yesterday's closing prices.
The Communication - Components industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 30% 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.
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 $112.63, moving +1.71% from the previous trading session. The stock outpaced the S&P 500's daily gain of 1.63%. Elsewhere, the Dow gained 1.07%, while the tech-heavy Nasdaq added 0.3%.
Prior to today's trading, shares of the cloud networking company had gained 1.5% over the past month. This has outpaced the Computer and Technology sector's gain of 0.92% and lagged the S&P 500's gain of 2.94% 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 41.62% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.04 per share and revenue of $4.09 billion, which would represent changes of +40.77% and +38.62%, respectively, from the prior year.
Any recent changes to analyst estimates for Arista Networks should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 0.03% lower. Arista Networks currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Arista Networks has a Forward P/E ratio of 27.44 right now. Its industry sports an average Forward P/E of 16.65, so we one might conclude that Arista Networks is trading at a premium comparatively.
Also, we should mention that ANET has a PEG ratio of 1.75. 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. Communication - Components stocks are, on average, holding a PEG ratio of 1.75 based on yesterday's closing prices.
The Communication - Components industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 30% 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.
To follow ANET in the coming trading sessions, be sure to utilize Zacks.com.