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Arista Networks (ANET) Surpasses Market Returns: Some Facts Worth Knowing

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Arista Networks (ANET - Free Report) closed the most recent trading day at $196.40, moving +1.23% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.63%. At the same time, the Dow added 0.59%, and the tech-heavy Nasdaq gained 0.39%.

Prior to today's trading, shares of the cloud networking company had lost 1.25% over the past month. This has was narrower than the Computer and Technology sector's loss of 2.3% and the S&P 500's loss of 3.39% in that time.

The investment community will be paying close attention to the earnings performance of Arista Networks in its upcoming release. The company is slated to reveal its earnings on October 30, 2023. On that day, Arista Networks is projected to report earnings of $1.58 per share, which would represent year-over-year growth of 26.4%. Our most recent consensus estimate is calling for quarterly revenue of $1.48 billion, up 25.68% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.16 per share and a revenue of $5.75 billion, representing changes of +34.5% and +31.29%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Arista Networks. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Arista Networks possesses a Zacks Rank of #2 (Buy).

From a valuation perspective, Arista Networks is currently exchanging hands at a Forward P/E ratio of 31.47. This expresses a premium compared to the average Forward P/E of 15.99 of its industry.

We can additionally observe that ANET currently boasts a PEG ratio of 1.68. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Communication - Components was holding an average PEG ratio of 1.68 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 48, which puts it in the top 20% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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