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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 $153.80, moving +0.42% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.7%. Meanwhile, the Dow lost 0.87%, and the Nasdaq, a tech-heavy index, added 2.77%.

Prior to today's trading, shares of the cloud networking company had gained 8.26% over the past month. This has outpaced the Computer and Technology sector's loss of 2.73% and the S&P 500's loss of 5.06% in that time.

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, our latest consensus estimate is calling for revenue of $1.3 billion, up 48.58% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.79 per share and revenue of $5.46 billion. These totals would mark changes of +26.42% and +24.62%, respectively, from last year.

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.

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 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 has moved 12.84% higher within the past month. Arista Networks is currently a Zacks Rank #1 (Strong Buy).

Investors should also note Arista Networks's current valuation metrics, including its Forward P/E ratio of 26.47. This represents a premium compared to its industry's average Forward P/E of 18.43.

Also, we should mention that ANET has a PEG ratio of 1.87. 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 1.87 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 210, putting it in the bottom 17% 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 to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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