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Arista Networks (ANET) Soars 5.8%: Is Further Upside Left in the Stock?

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Arista Networks (ANET - Free Report) shares rallied 5.8% in the last trading session to close at $162.68. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 8.7% gain over the past four weeks.

Arista continues to benefit from solid momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. It is well-poised for growth in data-driven cloud networking business with proactive platforms and predictive operations.

In addition to high capacity and easy availability, its cloud networking solutions promise predictable performance along with programmability that enables integration with third-party applications for network management, automation and orchestration. The company holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. It is increasingly gaining market traction in 200-, and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.

This cloud networking company is expected to post quarterly earnings of $1.34 per share in its upcoming report, which represents a year-over-year change of +59.5%. Revenues are expected to be $1.3 billion, up 48.6% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Arista Networks, the consensus EPS estimate for the quarter has been revised 7% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on ANET going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Arista Networks belongs to the Zacks Communication - Components industry. Another stock from the same industry, Altice USA, Inc. (ATUS - Free Report) , closed the last trading session 2% lower at $3.50. Over the past month, ATUS has returned -25.8%.

Altice USA, Inc.'s consensus EPS estimate for the upcoming report has changed -74.3% over the past month to $0.05. Compared to the company's year-ago EPS, this represents a change of -88.4%. Altice USA, Inc. currently boasts a Zacks Rank of #5 (Strong Sell).

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