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Arista Networks (ANET) Dips More Than Broader Markets: What You Should Know
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Arista Networks (ANET - Free Report) closed the most recent trading day at $105.11, moving -1.1% from the previous trading session. This change lagged the S&P 500's daily loss of 0.67%. Elsewhere, the Dow lost 0.33%, while the tech-heavy Nasdaq lost 0.22%.
Prior to today's trading, shares of the cloud networking company had lost 6.83% over the past month. This has lagged the Computer and Technology sector's loss of 5.64% and the S&P 500's loss of 3.76% in that time.
Investors will be hoping for strength from Arista Networks as it approaches its next earnings release, which is expected to be October 31, 2022. On that day, Arista Networks is projected to report earnings of $1.05 per share, which would represent year-over-year growth of 41.89%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.06 billion, up 41.62% from the year-ago period.
ANET's full-year Zacks Consensus Estimates are calling for earnings of $4.04 per share and revenue of $4.09 billion. These results would represent year-over-year changes of +40.77% and +38.62%, respectively.
Investors might also notice recent changes to analyst estimates for Arista Networks. Recent revisions tend to reflect the latest 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.
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. The Zacks Consensus EPS estimate has moved 0.03% lower within the past month. Arista Networks currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Arista Networks is currently trading at a Forward P/E ratio of 26.34. This represents a premium compared to its industry's average Forward P/E of 16.65.
It is also worth noting that ANET currently has a PEG ratio of 1.68. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Communication - Components was holding an average PEG ratio of 1.68 at yesterday's closing price.
The Communication - Components industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 27% 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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Arista Networks (ANET) Dips More Than Broader Markets: What You Should Know
Arista Networks (ANET - Free Report) closed the most recent trading day at $105.11, moving -1.1% from the previous trading session. This change lagged the S&P 500's daily loss of 0.67%. Elsewhere, the Dow lost 0.33%, while the tech-heavy Nasdaq lost 0.22%.
Prior to today's trading, shares of the cloud networking company had lost 6.83% over the past month. This has lagged the Computer and Technology sector's loss of 5.64% and the S&P 500's loss of 3.76% in that time.
Investors will be hoping for strength from Arista Networks as it approaches its next earnings release, which is expected to be October 31, 2022. On that day, Arista Networks is projected to report earnings of $1.05 per share, which would represent year-over-year growth of 41.89%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.06 billion, up 41.62% from the year-ago period.
ANET's full-year Zacks Consensus Estimates are calling for earnings of $4.04 per share and revenue of $4.09 billion. These results would represent year-over-year changes of +40.77% and +38.62%, respectively.
Investors might also notice recent changes to analyst estimates for Arista Networks. Recent revisions tend to reflect the latest 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.
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. The Zacks Consensus EPS estimate has moved 0.03% lower within the past month. Arista Networks currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Arista Networks is currently trading at a Forward P/E ratio of 26.34. This represents a premium compared to its industry's average Forward P/E of 16.65.
It is also worth noting that ANET currently has a PEG ratio of 1.68. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Communication - Components was holding an average PEG ratio of 1.68 at yesterday's closing price.
The Communication - Components industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 27% 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.