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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 at $126.02 in the latest trading session, marking a +1.76% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.46%. At the same time, the Dow added 1.09%, and the tech-heavy Nasdaq gained 6.63%.
Coming into today, shares of the cloud networking company had gained 2.05% in the past month. In that same time, the Computer and Technology sector gained 9.6%, while the S&P 500 gained 4.75%.
Investors will be hoping for strength from Arista Networks as it approaches its next earnings release, which is expected to be February 13, 2023. The company is expected to report EPS of $1.21, up 47.56% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.2 billion, up 45.08% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Arista Networks. 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.
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.
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 0.82% higher. Arista Networks currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, Arista Networks is holding a Forward P/E ratio of 23.71. For comparison, its industry has an average Forward P/E of 17.67, which means Arista Networks is trading at a premium to the group.
We can also see that ANET currently has a PEG ratio of 1.36. 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 1.28 at yesterday's closing price.
The Communication - Components industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 41% 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) Outpaces Stock Market Gains: What You Should Know
Arista Networks (ANET - Free Report) closed at $126.02 in the latest trading session, marking a +1.76% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.46%. At the same time, the Dow added 1.09%, and the tech-heavy Nasdaq gained 6.63%.
Coming into today, shares of the cloud networking company had gained 2.05% in the past month. In that same time, the Computer and Technology sector gained 9.6%, while the S&P 500 gained 4.75%.
Investors will be hoping for strength from Arista Networks as it approaches its next earnings release, which is expected to be February 13, 2023. The company is expected to report EPS of $1.21, up 47.56% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.2 billion, up 45.08% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Arista Networks. 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.
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.
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 0.82% higher. Arista Networks currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, Arista Networks is holding a Forward P/E ratio of 23.71. For comparison, its industry has an average Forward P/E of 17.67, which means Arista Networks is trading at a premium to the group.
We can also see that ANET currently has a PEG ratio of 1.36. 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 1.28 at yesterday's closing price.
The Communication - Components industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 41% 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.