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Arista Networks (ANET) Stock Falls Amid Market Uptick: What Investors Need to Know
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Arista Networks (ANET - Free Report) ended the recent trading session at $359.16, demonstrating a -0.17% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.13%. Meanwhile, the Dow experienced a rise of 0.55%, and the technology-dominated Nasdaq saw a decrease of 0.52%.
The the stock of cloud networking company has risen by 1.66% in the past month, leading the Computer and Technology sector's gain of 1.56% and undershooting the S&P 500's gain of 3.67%.
The investment community will be paying close attention to the earnings performance of Arista Networks in its upcoming release. On that day, Arista Networks is projected to report earnings of $2.08 per share, which would represent year-over-year growth of 13.66%. In the meantime, our current consensus estimate forecasts the revenue to be $1.75 billion, indicating a 16% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.24 per share and revenue of $6.8 billion, which would represent changes of +18.73% and +16.07%, respectively, from the prior year.
It is also important to note the 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Arista Networks currently has a Zacks Rank of #2 (Buy).
In the context of valuation, Arista Networks is at present trading with a Forward P/E ratio of 43.64. This indicates a premium in contrast to its industry's Forward P/E of 21.54.
It's also important to note that ANET currently trades at a PEG ratio of 2.54. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. ANET's industry had an average PEG ratio of 2.54 as of yesterday's close.
The Communication - Components industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 20, which puts it in the top 8% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Arista Networks (ANET) Stock Falls Amid Market Uptick: What Investors Need to Know
Arista Networks (ANET - Free Report) ended the recent trading session at $359.16, demonstrating a -0.17% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.13%. Meanwhile, the Dow experienced a rise of 0.55%, and the technology-dominated Nasdaq saw a decrease of 0.52%.
The the stock of cloud networking company has risen by 1.66% in the past month, leading the Computer and Technology sector's gain of 1.56% and undershooting the S&P 500's gain of 3.67%.
The investment community will be paying close attention to the earnings performance of Arista Networks in its upcoming release. On that day, Arista Networks is projected to report earnings of $2.08 per share, which would represent year-over-year growth of 13.66%. In the meantime, our current consensus estimate forecasts the revenue to be $1.75 billion, indicating a 16% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.24 per share and revenue of $6.8 billion, which would represent changes of +18.73% and +16.07%, respectively, from the prior year.
It is also important to note the 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Arista Networks currently has a Zacks Rank of #2 (Buy).
In the context of valuation, Arista Networks is at present trading with a Forward P/E ratio of 43.64. This indicates a premium in contrast to its industry's Forward P/E of 21.54.
It's also important to note that ANET currently trades at a PEG ratio of 2.54. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. ANET's industry had an average PEG ratio of 2.54 as of yesterday's close.
The Communication - Components industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 20, which puts it in the top 8% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.