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

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In the latest trading session, Arista Networks (ANET - Free Report) closed at $121.90, marking a +0.45% move from the previous day. The stock outpaced the S&P 500's daily loss of 1.03%. Elsewhere, the Dow lost 1.15%, while the tech-heavy Nasdaq added 0.37%.

Coming into today, shares of the cloud networking company had gained 0.9% in the past month. In that same time, the Computer and Technology sector lost 4.49%, while the S&P 500 lost 3.51%.

Wall Street will be looking for positivity from Arista Networks as it approaches its next earnings report date. This is expected to be October 31, 2022. The company is expected to report EPS of $1.05, up 41.89% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.06 billion, up 41.51% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.04 per share and revenue of $4.09 billion, which would represent changes of +40.77% and +38.64%, 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. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 remained stagnant within the past month. Arista Networks currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Arista Networks has a Forward P/E ratio of 30.07 right now. This represents a premium compared to its industry's average Forward P/E of 17.57.

We can also see that ANET currently has a PEG ratio of 1.91. 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. ANET's industry had an average PEG ratio of 1.91 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 87, putting it in the top 35% 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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