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Arista Networks (ANET) Stock Moves -1.12%: What You Should Know
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Arista Networks (ANET - Free Report) closed the most recent trading day at $115, moving -1.12% from the previous trading session. This move was narrower than the S&P 500's daily loss of 1.56%. At the same time, the Dow lost 1.81%, and the tech-heavy Nasdaq lost 4.66%.
Coming into today, shares of the cloud networking company had lost 4.49% in the past month. In that same time, the Computer and Technology sector gained 3.96%, while the S&P 500 gained 3.82%.
Investors will be hoping for strength from Arista Networks as it approaches its next earnings release, which is expected to be February 13, 2023. In that report, analysts expect Arista Networks to post earnings of $1.21 per share. This would mark 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.
Any recent changes to analyst estimates for Arista Networks should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.74% higher. Arista Networks is currently a Zacks Rank #2 (Buy).
Investors should also note Arista Networks's current valuation metrics, including its Forward P/E ratio of 22.28. Its industry sports an average Forward P/E of 18.63, so we one might conclude that Arista Networks is trading at a premium comparatively.
We can also see that ANET currently has a PEG ratio of 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 industry currently has a Zacks Industry Rank of 54, which puts it in the top 22% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Arista Networks (ANET) Stock Moves -1.12%: What You Should Know
Arista Networks (ANET - Free Report) closed the most recent trading day at $115, moving -1.12% from the previous trading session. This move was narrower than the S&P 500's daily loss of 1.56%. At the same time, the Dow lost 1.81%, and the tech-heavy Nasdaq lost 4.66%.
Coming into today, shares of the cloud networking company had lost 4.49% in the past month. In that same time, the Computer and Technology sector gained 3.96%, while the S&P 500 gained 3.82%.
Investors will be hoping for strength from Arista Networks as it approaches its next earnings release, which is expected to be February 13, 2023. In that report, analysts expect Arista Networks to post earnings of $1.21 per share. This would mark 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.
Any recent changes to analyst estimates for Arista Networks should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.74% higher. Arista Networks is currently a Zacks Rank #2 (Buy).
Investors should also note Arista Networks's current valuation metrics, including its Forward P/E ratio of 22.28. Its industry sports an average Forward P/E of 18.63, so we one might conclude that Arista Networks is trading at a premium comparatively.
We can also see that ANET currently has a PEG ratio of 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 industry currently has a Zacks Industry Rank of 54, which puts it in the top 22% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.