Stocks faced adverse price action following Powell’s testimony last week, with hawkish comments surrounding the peak Fed funds rate spooking investors.
Still, the outlook remains strong for many stocks, including Arista Networks (ANET - Free Report) . The company currently sports the highly-coveted Zacks Rank #1 (Buy), with earnings estimates drifting higher across all timeframes.
Arista Networks provides cloud networking solutions for data centers and cloud computing environments. The company utilizes a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud footprint.
Let’s take a closer look at how the company currently stacks up.
Quarterly Performance
ANET has consistently delivered strong quarterly results, exceeding the Zacks Consensus EPS Estimate by double-digit percentages in three consecutive quarters.
Just in its latest release, ANET reported bottom line results 16.5% above expectations and delivered a 6.6% revenue surprise. Below is a chart illustrating the company’s revenue on a quarterly basis.
The market has undoubtedly appreciated ANET’s quarterly results, with shares soaring following each of its last three releases. This is illustrated in the chart below.
Valuation
ANET’s 25.7X forward earnings multiple is on the higher end of the spectrum but remains well below the 34.2X five-year median and nearly unbelievable highs of 66.7X in 2022.
Further, the company’s forward price-to-sales presently sits at 8.3X, a few ticks below the 8.5X five-year median and highs of 15.1X in 2022.
Growth Estimates
And to top it off, the company sports a strong growth profile, with the Zacks Consensus EPS Estimate of $5.79 for its current fiscal year (FY23), indicating an improvement of 26% year-over-year.
And in FY24, the company’s earnings are forecasted to grow a further 11%.
The projected earnings growth comes on the back of forecasted year-over-year revenue upticks of 25% in FY23 and 11% in FY24.
Bottom Line
Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
Additionally, the top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Arista Networks (ANET - Free Report) would be an excellent stock for investors to keep on their watchlists, as displayed by its Zack Rank #1 (Strong Buy).
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Stocks faced adverse price action following Powell’s testimony last week, with hawkish comments surrounding the peak Fed funds rate spooking investors.
Still, the outlook remains strong for many stocks, including Arista Networks (ANET - Free Report) . The company currently sports the highly-coveted Zacks Rank #1 (Buy), with earnings estimates drifting higher across all timeframes.
Arista Networks provides cloud networking solutions for data centers and cloud computing environments. The company utilizes a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud footprint.
Let’s take a closer look at how the company currently stacks up.
Quarterly Performance
ANET has consistently delivered strong quarterly results, exceeding the Zacks Consensus EPS Estimate by double-digit percentages in three consecutive quarters.
Just in its latest release, ANET reported bottom line results 16.5% above expectations and delivered a 6.6% revenue surprise. Below is a chart illustrating the company’s revenue on a quarterly basis.
The market has undoubtedly appreciated ANET’s quarterly results, with shares soaring following each of its last three releases. This is illustrated in the chart below.
Valuation
ANET’s 25.7X forward earnings multiple is on the higher end of the spectrum but remains well below the 34.2X five-year median and nearly unbelievable highs of 66.7X in 2022.
Further, the company’s forward price-to-sales presently sits at 8.3X, a few ticks below the 8.5X five-year median and highs of 15.1X in 2022.
Growth Estimates
And to top it off, the company sports a strong growth profile, with the Zacks Consensus EPS Estimate of $5.79 for its current fiscal year (FY23), indicating an improvement of 26% year-over-year.
And in FY24, the company’s earnings are forecasted to grow a further 11%.
The projected earnings growth comes on the back of forecasted year-over-year revenue upticks of 25% in FY23 and 11% in FY24.
Bottom Line
Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
Additionally, the top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Arista Networks (ANET - Free Report) would be an excellent stock for investors to keep on their watchlists, as displayed by its Zack Rank #1 (Strong Buy).
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
>>Send me my free report on the top 5 EV stocks<<
Get the latest research report on ANET - FREE