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Arista Networks (ANET) Stock Moves -0.17%: What You Should Know

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Arista Networks (ANET - Free Report) closed at $327.97 in the latest trading session, marking a -0.17% move from the prior day. This change was narrower than the S&P 500's 0.23% loss on the day. Meanwhile, the Dow lost 0.01%, and the Nasdaq, a tech-heavy index, lost 0.05%.

Heading into today, shares of the cloud networking company had gained 11.3% over the past month, outpacing the Computer and Technology sector's gain of 4.13% and the S&P 500's gain of 3.16% in that time.

Investors will be hoping for strength from ANET as it approaches its next earnings release, which is expected to be May 2, 2019. On that day, ANET is projected to report earnings of $2.07 per share, which would represent year-over-year growth of 24.7%. Meanwhile, our latest consensus estimate is calling for revenue of $594.15 million, up 25.75% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $9.26 per share and revenue of $2.64 billion, which would represent changes of +16.33% and +22.76%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for ANET. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. ANET is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, ANET is holding a Forward P/E ratio of 35.48. For comparison, its industry has an average Forward P/E of 25.26, which means ANET is trading at a premium to the group.

It is also worth noting that ANET currently has a PEG ratio of 1.76. 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. The Communication - Components was holding an average PEG ratio of 2.06 at yesterday's closing price.

The Communication - Components industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% of all 250+ industries.

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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