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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 at $142.87 in the latest trading session, marking a +0.2% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.53%. Elsewhere, the Dow lost 1.72%, while the tech-heavy Nasdaq lost 3.27%.
Coming into today, shares of the cloud networking company had gained 9.94% in the past month. In that same time, the Computer and Technology sector lost 1.34%, while the S&P 500 lost 1.28%.
Wall Street will be looking for positivity from Arista Networks as it approaches its next earnings report date. In that report, analysts expect Arista Networks to post earnings of $1.34 per share. This would mark year-over-year growth of 59.52%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.3 billion, up 48.58% from the year-ago period.
ANET's full-year Zacks Consensus Estimates are calling for earnings of $5.79 per share and revenue of $5.46 billion. These results would represent year-over-year changes of +26.42% and +24.62%, respectively.
Any recent changes to analyst estimates for Arista Networks should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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, 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 has moved 12.84% higher. Arista Networks is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that Arista Networks has a Forward P/E ratio of 24.64 right now. For comparison, its industry has an average Forward P/E of 18.07, which means Arista Networks is trading at a premium to the group.
Also, we should mention that ANET has a PEG ratio of 1.74. 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. ANET's industry had an average PEG ratio of 1.74 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 183, which puts it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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) Gains As Market Dips: What You Should Know
Arista Networks (ANET - Free Report) closed at $142.87 in the latest trading session, marking a +0.2% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.53%. Elsewhere, the Dow lost 1.72%, while the tech-heavy Nasdaq lost 3.27%.
Coming into today, shares of the cloud networking company had gained 9.94% in the past month. In that same time, the Computer and Technology sector lost 1.34%, while the S&P 500 lost 1.28%.
Wall Street will be looking for positivity from Arista Networks as it approaches its next earnings report date. In that report, analysts expect Arista Networks to post earnings of $1.34 per share. This would mark year-over-year growth of 59.52%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.3 billion, up 48.58% from the year-ago period.
ANET's full-year Zacks Consensus Estimates are calling for earnings of $5.79 per share and revenue of $5.46 billion. These results would represent year-over-year changes of +26.42% and +24.62%, respectively.
Any recent changes to analyst estimates for Arista Networks should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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, 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 has moved 12.84% higher. Arista Networks is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that Arista Networks has a Forward P/E ratio of 24.64 right now. For comparison, its industry has an average Forward P/E of 18.07, which means Arista Networks is trading at a premium to the group.
Also, we should mention that ANET has a PEG ratio of 1.74. 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. ANET's industry had an average PEG ratio of 1.74 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 183, which puts it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.