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Arista Networks (ANET) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Arista Networks (ANET - Free Report) closed at $162.50, marking a -0.31% move from the previous day. This change lagged the S&P 500's 1.42% gain on the day. At the same time, the Dow added 1%, and the tech-heavy Nasdaq gained 5.16%.
Prior to today's trading, shares of the cloud networking company had gained 17.52% over the past month. This has outpaced the Computer and Technology sector's gain of 6.12% and the S&P 500's gain of 0.27% 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 48.66% from the prior-year quarter.
ANET's full-year Zacks Consensus Estimates are calling for earnings of $5.79 per share and revenue of $5.47 billion. These results would represent year-over-year changes of +26.42% and +24.78%, respectively.
It is also important to note the recent changes to analyst estimates for Arista Networks. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 0.12% higher within the past month. Arista Networks is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Arista Networks is holding a Forward P/E ratio of 28.14. This represents a premium compared to its industry's average Forward P/E of 17.07.
Meanwhile, ANET's PEG ratio is currently 1.99. 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 1.99 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 177, which puts it in the bottom 30% 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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Arista Networks (ANET) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Arista Networks (ANET - Free Report) closed at $162.50, marking a -0.31% move from the previous day. This change lagged the S&P 500's 1.42% gain on the day. At the same time, the Dow added 1%, and the tech-heavy Nasdaq gained 5.16%.
Prior to today's trading, shares of the cloud networking company had gained 17.52% over the past month. This has outpaced the Computer and Technology sector's gain of 6.12% and the S&P 500's gain of 0.27% 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 48.66% from the prior-year quarter.
ANET's full-year Zacks Consensus Estimates are calling for earnings of $5.79 per share and revenue of $5.47 billion. These results would represent year-over-year changes of +26.42% and +24.78%, respectively.
It is also important to note the recent changes to analyst estimates for Arista Networks. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 0.12% higher within the past month. Arista Networks is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Arista Networks is holding a Forward P/E ratio of 28.14. This represents a premium compared to its industry's average Forward P/E of 17.07.
Meanwhile, ANET's PEG ratio is currently 1.99. 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 1.99 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 177, which puts it in the bottom 30% 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.