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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 $297.58, moving +0.27% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.26%. Meanwhile, the Dow experienced a rise of 0.18%, and the technology-dominated Nasdaq saw an increase of 0.35%.
The the stock of cloud networking company has fallen by 5.49% in the past month, lagging the Computer and Technology sector's gain of 6.38% and the S&P 500's gain of 3.25%.
The upcoming earnings release of Arista Networks will be of great interest to investors. 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, our latest consensus estimate is calling for revenue of $1.64 billion, up 12.31% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $7.92 per share and a revenue of $6.69 billion, demonstrating changes of +14.12% and +14.15%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Arista Networks. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.43% higher. Arista Networks currently has a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Arista Networks is presently trading at a Forward P/E ratio of 37.49. For comparison, its industry has an average Forward P/E of 19.41, which means Arista Networks is trading at a premium to the group.
We can also see that ANET currently has a PEG ratio of 2.39. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Communication - Components stocks are, on average, holding a PEG ratio of 0.85 based on yesterday's closing prices.
The Communication - Components industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 81, which puts it in the top 33% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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) Surpasses Market Returns: Some Facts Worth Knowing
Arista Networks (ANET - Free Report) closed the most recent trading day at $297.58, moving +0.27% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.26%. Meanwhile, the Dow experienced a rise of 0.18%, and the technology-dominated Nasdaq saw an increase of 0.35%.
The the stock of cloud networking company has fallen by 5.49% in the past month, lagging the Computer and Technology sector's gain of 6.38% and the S&P 500's gain of 3.25%.
The upcoming earnings release of Arista Networks will be of great interest to investors. 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, our latest consensus estimate is calling for revenue of $1.64 billion, up 12.31% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $7.92 per share and a revenue of $6.69 billion, demonstrating changes of +14.12% and +14.15%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Arista Networks. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.43% higher. Arista Networks currently has a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Arista Networks is presently trading at a Forward P/E ratio of 37.49. For comparison, its industry has an average Forward P/E of 19.41, which means Arista Networks is trading at a premium to the group.
We can also see that ANET currently has a PEG ratio of 2.39. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Communication - Components stocks are, on average, holding a PEG ratio of 0.85 based on yesterday's closing prices.
The Communication - Components industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 81, which puts it in the top 33% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.