Arista Networks (ANET – Free Report) closed the most recent trading day at $115.51, moving +0.19% from the previous trading session. The stock’s performance was ahead of the S&P 500’s daily gain of 0.16%. On the other hand, the Dow registered a gain of 0.25%, and the technology-centric Nasdaq decreased by 0.06%.
Shares of the cloud networking company have appreciated by 10.03% over the course of the past month, outperforming the Computer and Technology sector’s loss of 0.17% and the S&P 500’s loss of 2.8%.
Analysts and investors alike will be keeping a close eye on the performance of Arista Networks in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.57, indicating a 9.62% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.89 billion, up 22.42% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for Arista Networks. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Arista Networks boasts a Zacks Rank of #2 (Buy).
In terms of valuation, Arista Networks is presently being traded at a Forward P/E ratio of 47.79. This indicates a premium in contrast to its industry’s Forward P/E of 22.73.
One should further note that ANET currently holds a PEG ratio of 2.79. 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 industry currently had an average PEG ratio of 1.29 as of yesterday’s close.
The Communication – Components industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 43, this industry ranks in the top 18% of all industries, numbering over 250.
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.
Don’t forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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