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Arista Networks (ANET) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Arista Networks (ANET - Free Report) closed at $182.75, marking a -1.13% move from the previous day. This change lagged the S&P 500's daily loss of 0.94%. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, lost 1.53%.
Prior to today's trading, shares of the cloud networking company had lost 1.43% over the past month. This has lagged the Computer and Technology sector's gain of 3.69% and the S&P 500's gain of 1.85% in that time.
Investors will be hoping for strength from Arista Networks as it approaches its next earnings release. On that day, Arista Networks is projected to report earnings of $1.58 per share, which would represent year-over-year growth of 26.4%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.48 billion, up 25.68% from the year-ago period.
ANET's full-year Zacks Consensus Estimates are calling for earnings of $6.16 per share and revenue of $5.75 billion. These results would represent year-over-year changes of +34.5% and +31.29%, respectively.
Investors should also note any 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. Arista Networks is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Arista Networks is currently trading at a Forward P/E ratio of 29.98. Its industry sports an average Forward P/E of 21.21, so we one might conclude that Arista Networks is trading at a premium comparatively.
We can also see that ANET currently has a PEG ratio of 1.6. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Communication - Components industry currently had an average PEG ratio of 1.6 as of yesterday's close.
The Communication - Components industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 68, putting it in the top 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Arista Networks (ANET) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Arista Networks (ANET - Free Report) closed at $182.75, marking a -1.13% move from the previous day. This change lagged the S&P 500's daily loss of 0.94%. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, lost 1.53%.
Prior to today's trading, shares of the cloud networking company had lost 1.43% over the past month. This has lagged the Computer and Technology sector's gain of 3.69% and the S&P 500's gain of 1.85% in that time.
Investors will be hoping for strength from Arista Networks as it approaches its next earnings release. On that day, Arista Networks is projected to report earnings of $1.58 per share, which would represent year-over-year growth of 26.4%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.48 billion, up 25.68% from the year-ago period.
ANET's full-year Zacks Consensus Estimates are calling for earnings of $6.16 per share and revenue of $5.75 billion. These results would represent year-over-year changes of +34.5% and +31.29%, respectively.
Investors should also note any 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. Arista Networks is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Arista Networks is currently trading at a Forward P/E ratio of 29.98. Its industry sports an average Forward P/E of 21.21, so we one might conclude that Arista Networks is trading at a premium comparatively.
We can also see that ANET currently has a PEG ratio of 1.6. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Communication - Components industry currently had an average PEG ratio of 1.6 as of yesterday's close.
The Communication - Components industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 68, putting it in the top 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.