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Arista Networks (ANET) Dips More Than Broader Markets: What You Should Know
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Arista Networks (ANET - Free Report) closed the most recent trading day at $118.86, moving -0.76% from the previous trading session. This change lagged the S&P 500's 0.41% loss on the day. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq lost 6.67%.
Heading into today, shares of the cloud networking company had lost 10.42% over the past month, lagging the Computer and Technology sector's loss of 6.38% and the S&P 500's loss of 4.4% in that time.
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 $1.21 per share, which would represent year-over-year growth of 47.56%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.19 billion, up 44.9% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.37 per share and revenue of $4.3 billion, which would represent changes of +52.26% and +45.87%, 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. 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, 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 has moved 0.05% higher. Arista Networks is currently sporting a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Arista Networks currently has a Forward P/E ratio of 27.38. This valuation marks a premium compared to its industry's average Forward P/E of 22.05.
It is also worth noting that ANET currently has a PEG ratio of 1.57. 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. ANET's industry had an average PEG ratio of 1.53 as of yesterday's close.
The Communication - Components industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 10, which puts it in the top 4% 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) Dips More Than Broader Markets: What You Should Know
Arista Networks (ANET - Free Report) closed the most recent trading day at $118.86, moving -0.76% from the previous trading session. This change lagged the S&P 500's 0.41% loss on the day. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq lost 6.67%.
Heading into today, shares of the cloud networking company had lost 10.42% over the past month, lagging the Computer and Technology sector's loss of 6.38% and the S&P 500's loss of 4.4% in that time.
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 $1.21 per share, which would represent year-over-year growth of 47.56%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.19 billion, up 44.9% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.37 per share and revenue of $4.3 billion, which would represent changes of +52.26% and +45.87%, 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. 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, 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 has moved 0.05% higher. Arista Networks is currently sporting a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Arista Networks currently has a Forward P/E ratio of 27.38. This valuation marks a premium compared to its industry's average Forward P/E of 22.05.
It is also worth noting that ANET currently has a PEG ratio of 1.57. 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. ANET's industry had an average PEG ratio of 1.53 as of yesterday's close.
The Communication - Components industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 10, which puts it in the top 4% 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.