Arista Networks (ANET – Free Report) closed the latest trading day at $83.99, indicating a -1.29% change from the previous session’s end. The stock’s change was less than the S&P 500’s daily loss of 1.07%. At the same time, the Dow lost 0.62%, and the tech-heavy Nasdaq lost 1.71%.
Shares of the cloud networking company have depreciated by 20.38% over the course of the past month, underperforming the Computer and Technology sector’s loss of 11.12% and the S&P 500’s loss of 7.03%.
The investment community will be closely monitoring the performance of Arista Networks in its forthcoming earnings report. The company’s earnings per share (EPS) are projected to be $0.60, reflecting a 20% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.96 billion, indicating a 24.71% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.56 per share and a revenue of $8.27 billion, indicating changes of +12.78% and +18.08%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Arista Networks. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 6.18% higher. Right now, Arista Networks possesses a Zacks Rank of #2 (Buy).
In the context of valuation, Arista Networks is at present trading with a Forward P/E ratio of 33.28. This represents a premium compared to its industry’s average Forward P/E of 27.87.
One should further note that ANET currently holds a PEG ratio of 2.31. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. By the end of yesterday’s trading, the Internet – Software industry had an average PEG ratio of 2.03.
The Internet – Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 79, which puts it in the top 32% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Financial Market Newsflash
No financial news published today. Check back later.
