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) Stock Drops Despite Market Gains: Important Facts to Note
Read MoreHide Full Article
Arista Networks (ANET - Free Report) closed the latest trading day at $293.18, indicating a -1.08% change from the previous session's end. This change lagged the S&P 500's daily gain of 0.15%. Meanwhile, the Dow experienced a rise of 0.36%, and the technology-dominated Nasdaq saw an increase of 0.17%.
The the stock of cloud networking company has risen by 6.3% in the past month, leading the Computer and Technology sector's gain of 5.13% and the S&P 500's gain of 3.2%.
Analysts and investors alike will be keeping a close eye on the performance of Arista Networks in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.93, marking a 22.15% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.64 billion, up 12.31% from the year-ago period.
ANET's full-year Zacks Consensus Estimates are calling for earnings of $7.92 per share and revenue of $6.69 billion. These results would represent year-over-year changes of +14.12% and +14.15%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Arista Networks. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, there's been a 4.52% rise in the Zacks Consensus EPS estimate. Right now, Arista Networks possesses a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Arista Networks is presently trading at a Forward P/E ratio of 37.44. This represents a premium compared to its industry's average Forward P/E of 19.64.
One should further note that ANET currently holds a PEG ratio of 2.39. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Communication - Components industry held an average PEG ratio of 0.89.
The Communication - Components industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 79, this industry ranks in the top 32% of all industries, numbering over 250.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Arista Networks (ANET) Stock Drops Despite Market Gains: Important Facts to Note
Arista Networks (ANET - Free Report) closed the latest trading day at $293.18, indicating a -1.08% change from the previous session's end. This change lagged the S&P 500's daily gain of 0.15%. Meanwhile, the Dow experienced a rise of 0.36%, and the technology-dominated Nasdaq saw an increase of 0.17%.
The the stock of cloud networking company has risen by 6.3% in the past month, leading the Computer and Technology sector's gain of 5.13% and the S&P 500's gain of 3.2%.
Analysts and investors alike will be keeping a close eye on the performance of Arista Networks in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.93, marking a 22.15% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.64 billion, up 12.31% from the year-ago period.
ANET's full-year Zacks Consensus Estimates are calling for earnings of $7.92 per share and revenue of $6.69 billion. These results would represent year-over-year changes of +14.12% and +14.15%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Arista Networks. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, there's been a 4.52% rise in the Zacks Consensus EPS estimate. Right now, Arista Networks possesses a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Arista Networks is presently trading at a Forward P/E ratio of 37.44. This represents a premium compared to its industry's average Forward P/E of 19.64.
One should further note that ANET currently holds a PEG ratio of 2.39. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Communication - Components industry held an average PEG ratio of 0.89.
The Communication - Components industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 79, this industry ranks in the top 32% of all industries, numbering over 250.
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.