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Arista Networks (ANET) Gains As Market Dips: What You Should Know

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Arista Networks (ANET - Free Report) closed the most recent trading day at $98.30, moving +0.04% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.45%. Elsewhere, the Dow lost 0.67%, while the tech-heavy Nasdaq lost 0.05%.

Coming into today, shares of the cloud networking company had gained 6.89% in the past month. In that same time, the Computer and Technology sector lost 2.03%, while the S&P 500 lost 1.89%.

Wall Street will be looking for positivity from Arista Networks as it approaches its next earnings report date. This is expected to be August 1, 2022. On that day, Arista Networks is projected to report earnings of $0.92 per share, which would represent year-over-year growth of 35.29%. Meanwhile, our latest consensus estimate is calling for revenue of $976.77 million, up 38.1% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.68 per share and revenue of $3.9 billion, which would represent changes of +28.22% and +32.29%, respectively, from the prior year.

Any recent changes to analyst estimates for Arista Networks should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Arista Networks is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Arista Networks's current valuation metrics, including its Forward P/E ratio of 26.7. This valuation marks a premium compared to its industry's average Forward P/E of 15.

It is also worth noting that ANET currently has a PEG ratio of 1.43. 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. ANET's industry had an average PEG ratio of 1.57 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 82, which puts it in the top 33% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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