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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 $159.85, marking a -1.85% move from the previous day. This change lagged the S&P 500's 0.36% gain on the day. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq added 1.91%.
Heading into today, shares of the cloud networking company had gained 9.74% over the past month, outpacing the Computer and Technology sector's gain of 5.72% and the S&P 500's gain of 1.24% in that time.
Wall Street will be looking for positivity from Arista Networks as it approaches its next earnings report date. This is expected to be May 1, 2023. The company is expected to report EPS of $1.35, up 60.71% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.3 billion, up 48.66% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.85 per share and revenue of $5.47 billion. These totals would mark changes of +27.73% and +24.78%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Arista Networks. Recent revisions tend to reflect the latest near-term business trends. 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. 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 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 1.21% higher within the past month. Arista Networks is currently a Zacks Rank #1 (Strong Buy).
Looking at its valuation, Arista Networks is holding a Forward P/E ratio of 27.85. For comparison, its industry has an average Forward P/E of 20.33, which means Arista Networks is trading at a premium to the group.
It is also worth noting that ANET currently has a PEG ratio of 1.97. 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. The Communication - Components was holding an average PEG ratio of 1.97 at yesterday's closing price.
The Communication - Components industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 42% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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 $159.85, marking a -1.85% move from the previous day. This change lagged the S&P 500's 0.36% gain on the day. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq added 1.91%.
Heading into today, shares of the cloud networking company had gained 9.74% over the past month, outpacing the Computer and Technology sector's gain of 5.72% and the S&P 500's gain of 1.24% in that time.
Wall Street will be looking for positivity from Arista Networks as it approaches its next earnings report date. This is expected to be May 1, 2023. The company is expected to report EPS of $1.35, up 60.71% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.3 billion, up 48.66% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.85 per share and revenue of $5.47 billion. These totals would mark changes of +27.73% and +24.78%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Arista Networks. Recent revisions tend to reflect the latest near-term business trends. 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. 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 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 1.21% higher within the past month. Arista Networks is currently a Zacks Rank #1 (Strong Buy).
Looking at its valuation, Arista Networks is holding a Forward P/E ratio of 27.85. For comparison, its industry has an average Forward P/E of 20.33, which means Arista Networks is trading at a premium to the group.
It is also worth noting that ANET currently has a PEG ratio of 1.97. 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. The Communication - Components was holding an average PEG ratio of 1.97 at yesterday's closing price.
The Communication - Components industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 42% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.