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) Gains But Lags Market: What You Should Know
Read MoreHide Full Article
Arista Networks (ANET - Free Report) closed at $115.23 in the latest trading session, marking a +0.31% move from the prior day. This move lagged the S&P 500's daily gain of 0.7%. Elsewhere, the Dow gained 0.56%, while the tech-heavy Nasdaq added 7.5%.
Heading into today, shares of the cloud networking company had lost 12.29% over the past month, lagging the Computer and Technology sector's loss of 2.78% and the S&P 500's loss of 0.94% 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 $1.21, up 47.56% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.19 billion, up 44.9% from the prior-year quarter.
Any recent changes to analyst estimates for Arista Networks should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.59% higher within the past month. 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 22.14. For comparison, its industry has an average Forward P/E of 18.13, which means Arista Networks is trading at a premium to the group.
Meanwhile, ANET's PEG ratio is currently 1.27. 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 industry currently had an average PEG ratio of 1.27 as of yesterday's close.
The Communication - Components industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 57, putting it in the top 23% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Arista Networks (ANET) Gains But Lags Market: What You Should Know
Arista Networks (ANET - Free Report) closed at $115.23 in the latest trading session, marking a +0.31% move from the prior day. This move lagged the S&P 500's daily gain of 0.7%. Elsewhere, the Dow gained 0.56%, while the tech-heavy Nasdaq added 7.5%.
Heading into today, shares of the cloud networking company had lost 12.29% over the past month, lagging the Computer and Technology sector's loss of 2.78% and the S&P 500's loss of 0.94% 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 $1.21, up 47.56% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.19 billion, up 44.9% from the prior-year quarter.
Any recent changes to analyst estimates for Arista Networks should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.59% higher within the past month. 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 22.14. For comparison, its industry has an average Forward P/E of 18.13, which means Arista Networks is trading at a premium to the group.
Meanwhile, ANET's PEG ratio is currently 1.27. 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 industry currently had an average PEG ratio of 1.27 as of yesterday's close.
The Communication - Components industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 57, putting it in the top 23% 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.