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) Dips More Than Broader Markets: What You Should Know
Read MoreHide Full Article
Arista Networks (ANET - Free Report) closed the most recent trading day at $184.89, moving -1.55% from the previous trading session. This change lagged the S&P 500's 1.37% loss on the day. At the same time, the Dow lost 1.29%, and the tech-heavy Nasdaq lost 1.87%.
Prior to today's trading, shares of the cloud networking company had lost 4.84% over the past month. This has lagged the Computer and Technology sector's loss of 4.68% and was narrower than the S&P 500's loss of 4.93% in that time.
Arista Networks will be looking to display strength as it nears its next earnings release, which is expected to be October 30, 2023. The company is expected to report EPS of $1.58, up 26.4% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.48 billion, up 25.68% from the year-ago period.
ANET's full-year Zacks Consensus Estimates are calling for earnings of $6.16 per share and revenue of $5.75 billion. These results would represent year-over-year changes of +34.5% and +31.29%, respectively.
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.
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. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. Arista Networks currently has a Zacks Rank of #2 (Buy).
Investors should also note Arista Networks's current valuation metrics, including its Forward P/E ratio of 30.47. For comparison, its industry has an average Forward P/E of 20.91, which means Arista Networks is trading at a premium to the group.
We can also see that ANET currently has a PEG ratio of 1.62. 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 was holding an average PEG ratio of 1.62 at yesterday's closing price.
The Communication - Components industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 45, putting it in the top 18% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Arista Networks (ANET) Dips More Than Broader Markets: What You Should Know
Arista Networks (ANET - Free Report) closed the most recent trading day at $184.89, moving -1.55% from the previous trading session. This change lagged the S&P 500's 1.37% loss on the day. At the same time, the Dow lost 1.29%, and the tech-heavy Nasdaq lost 1.87%.
Prior to today's trading, shares of the cloud networking company had lost 4.84% over the past month. This has lagged the Computer and Technology sector's loss of 4.68% and was narrower than the S&P 500's loss of 4.93% in that time.
Arista Networks will be looking to display strength as it nears its next earnings release, which is expected to be October 30, 2023. The company is expected to report EPS of $1.58, up 26.4% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.48 billion, up 25.68% from the year-ago period.
ANET's full-year Zacks Consensus Estimates are calling for earnings of $6.16 per share and revenue of $5.75 billion. These results would represent year-over-year changes of +34.5% and +31.29%, respectively.
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.
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. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. Arista Networks currently has a Zacks Rank of #2 (Buy).
Investors should also note Arista Networks's current valuation metrics, including its Forward P/E ratio of 30.47. For comparison, its industry has an average Forward P/E of 20.91, which means Arista Networks is trading at a premium to the group.
We can also see that ANET currently has a PEG ratio of 1.62. 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 was holding an average PEG ratio of 1.62 at yesterday's closing price.
The Communication - Components industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 45, putting it in the top 18% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.