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Arista Networks (ANET) Beats Stock Market Upswing: What Investors Need to Know
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The most recent trading session ended with Arista Networks (ANET - Free Report) standing at $371.07, reflecting a +1.35% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a gain of 0.1% for the day. Elsewhere, the Dow lost 0.08%, while the tech-heavy Nasdaq added 0.28%.
Shares of the cloud networking company have appreciated by 23.37% over the course of the past month, outperforming the Computer and Technology sector's gain of 8.41% and the S&P 500's gain of 4.08%.
Analysts and investors alike will be keeping a close eye on the performance of Arista Networks in its upcoming earnings disclosure. The company's earnings report is set to go public on July 30, 2024. In that report, analysts expect Arista Networks to post earnings of $1.93 per share. This would mark year-over-year growth of 22.15%. Alongside, our most recent consensus estimate is anticipating revenue of $1.64 billion, indicating a 12.31% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.92 per share and a revenue of $6.69 billion, indicating changes of +14.12% and +14.15%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Arista Networks. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Arista Networks presently features a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Arista Networks currently has a Forward P/E ratio of 46.24. This indicates a premium in contrast to its industry's Forward P/E of 17.94.
It is also worth noting that ANET currently has a PEG ratio of 2.88. 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 1.75 at yesterday's closing price.
The Communication - Components industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 206, this industry ranks in the bottom 19% of all industries, numbering over 250.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Arista Networks (ANET) Beats Stock Market Upswing: What Investors Need to Know
The most recent trading session ended with Arista Networks (ANET - Free Report) standing at $371.07, reflecting a +1.35% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a gain of 0.1% for the day. Elsewhere, the Dow lost 0.08%, while the tech-heavy Nasdaq added 0.28%.
Shares of the cloud networking company have appreciated by 23.37% over the course of the past month, outperforming the Computer and Technology sector's gain of 8.41% and the S&P 500's gain of 4.08%.
Analysts and investors alike will be keeping a close eye on the performance of Arista Networks in its upcoming earnings disclosure. The company's earnings report is set to go public on July 30, 2024. In that report, analysts expect Arista Networks to post earnings of $1.93 per share. This would mark year-over-year growth of 22.15%. Alongside, our most recent consensus estimate is anticipating revenue of $1.64 billion, indicating a 12.31% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.92 per share and a revenue of $6.69 billion, indicating changes of +14.12% and +14.15%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Arista Networks. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Arista Networks presently features a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Arista Networks currently has a Forward P/E ratio of 46.24. This indicates a premium in contrast to its industry's Forward P/E of 17.94.
It is also worth noting that ANET currently has a PEG ratio of 2.88. 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 1.75 at yesterday's closing price.
The Communication - Components industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 206, this industry ranks in the bottom 19% of all industries, numbering over 250.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.