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Arista Networks (ANET) Flat As Market Sinks: What You Should Know
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In the latest trading session, Arista Networks (ANET - Free Report) closed at $121.77, marking no change from the previous day. This move was narrower than the S&P 500's daily loss of 0.02%. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, added 5.44%.
Coming into today, shares of the cloud networking company had gained 2.45% in the past month. In that same time, the Computer and Technology sector gained 11.1%, while the S&P 500 gained 4.57%.
Arista Networks will be looking to display strength as it nears its next earnings release, which is expected to be February 13, 2023. The company is expected to report EPS of $1.21, up 47.56% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.2 billion, up 45.08% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for Arista Networks. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.82% higher within the past month. Arista Networks is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Arista Networks is holding a Forward P/E ratio of 23.31. Its industry sports an average Forward P/E of 17.83, so we one might conclude that Arista Networks is trading at a premium comparatively.
Also, we should mention that ANET has a PEG ratio of 1.33. 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 1.33 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 92, which puts it in the top 37% 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.
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Arista Networks (ANET) Flat As Market Sinks: What You Should Know
In the latest trading session, Arista Networks (ANET - Free Report) closed at $121.77, marking no change from the previous day. This move was narrower than the S&P 500's daily loss of 0.02%. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, added 5.44%.
Coming into today, shares of the cloud networking company had gained 2.45% in the past month. In that same time, the Computer and Technology sector gained 11.1%, while the S&P 500 gained 4.57%.
Arista Networks will be looking to display strength as it nears its next earnings release, which is expected to be February 13, 2023. The company is expected to report EPS of $1.21, up 47.56% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.2 billion, up 45.08% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for Arista Networks. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.82% higher within the past month. Arista Networks is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Arista Networks is holding a Forward P/E ratio of 23.31. Its industry sports an average Forward P/E of 17.83, so we one might conclude that Arista Networks is trading at a premium comparatively.
Also, we should mention that ANET has a PEG ratio of 1.33. 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 1.33 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 92, which puts it in the top 37% 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.