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Arista Networks (ANET) Stock Moves -1.2%: What You Should Know
In the latest trading session, Arista Networks (ANET - Free Report) closed at $166.06, marking a -1.2% move from the previous day. This change was narrower than the S&P 500's daily loss of 1.65%. Elsewhere, the Dow lost 1.63%, while the tech-heavy Nasdaq lost 6.65%.
Coming into today, shares of the cloud networking company had gained 24.94% in the past month. In that same time, the Computer and Technology sector gained 7.03%, while the S&P 500 gained 0.3%.
Wall Street will be looking for positivity from Arista Networks as it approaches its next earnings report date. On that day, Arista Networks is projected to report earnings of $1.34 per share, which would represent year-over-year growth of 59.52%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.3 billion, up 48.66% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.79 per share and revenue of $5.47 billion, which would represent changes of +26.42% and +24.78%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Arista Networks. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 has moved 0.64% higher. Arista Networks is currently sporting a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Arista Networks currently has a Forward P/E ratio of 29.02. This valuation marks a premium compared to its industry's average Forward P/E of 18.48.
Also, we should mention that ANET has a PEG ratio of 2.05. 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. Communication - Components stocks are, on average, holding a PEG ratio of 2.05 based on yesterday's closing prices.
The Communication - Components industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 198, which puts it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.