The most recent trading session ended with Arista Networks (ANET – Free Report) standing at $114.86, reflecting a +0.18% shift from the previouse trading day’s closing. This change outpaced the S&P 500’s 0.04% loss on the day. At the same time, the Dow added 0.07%, and the tech-heavy Nasdaq lost 0.05%.
Coming into today, shares of the cloud networking company had gained 14% in the past month. In that same time, the Computer and Technology sector gained 5.93%, while the S&P 500 gained 1.05%.
Investors will be eagerly watching for the performance of Arista Networks in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.57, showcasing a 9.62% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $1.89 billion, indicating a 22.42% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.20 per share and revenue of $6.96 billion. These totals would mark changes of +26.44% and +18.74%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Arista Networks. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.84% higher. Right now, Arista Networks possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Arista Networks has a Forward P/E ratio of 52.2 right now. For comparison, its industry has an average Forward P/E of 24.32, which means Arista Networks is trading at a premium to the group.
Investors should also note that ANET has a PEG ratio of 3.05 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Communication – Components industry currently had an average PEG ratio of 2.29 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 78, which puts it in the top 32% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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