Arista Networks (ANET – Free Report) closed the latest trading day at $86.94, indicating a -0.65% change from the previous session’s end. The stock’s performance was behind the S&P 500’s daily gain of 0.16%. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq added 0.46%.
Heading into today, shares of the cloud networking company had lost 5.59% over the past month, outpacing the Computer and Technology sector’s loss of 5.94% and lagging the S&P 500’s loss of 3.59% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Arista Networks in its upcoming earnings disclosure. On that day, Arista Networks is projected to report earnings of $0.60 per share, which would represent year-over-year growth of 20%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.96 billion, up 24.71% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.56 per share and revenue of $8.27 billion, which would represent changes of +12.78% and +18.08%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Arista Networks. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts’ positivity towards the company’s business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, Arista Networks is carrying a Zacks Rank of #2 (Buy).
Digging into valuation, Arista Networks currently has a Forward P/E ratio of 34.22. This valuation marks a premium compared to its industry’s average Forward P/E of 28.29.
We can also see that ANET currently has a PEG ratio of 2.37. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. ANET’s industry had an average PEG ratio of 2.07 as of yesterday’s close.
The Internet – Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 128, placing it within the top 50% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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