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Arista Networks (ANET) Stock Moves -0.14%: What You Should Know

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In the latest trading session, Arista Networks (ANET - Free Report) closed at $159.68, marking a -0.14% move from the previous day. This change was narrower than the S&P 500's daily loss of 0.2%. At the same time, the Dow lost 0.38%, and the tech-heavy Nasdaq lost 9.78%.

Coming into today, shares of the cloud networking company had gained 0.14% in the past month. In that same time, the Computer and Technology sector gained 4.63%, while the S&P 500 gained 4.16%.

Arista Networks will be looking to display strength as it nears its next earnings release, which is expected to be July 31, 2023. In that report, analysts expect Arista Networks to post earnings of $1.44 per share. This would mark year-over-year growth of 33.33%. Meanwhile, our latest consensus estimate is calling for revenue of $1.38 billion, up 31.07% from the prior-year quarter.

ANET's full-year Zacks Consensus Estimates are calling for earnings of $5.87 per share and revenue of $5.53 billion. These results would represent year-over-year changes of +28.17% and +26.31%, respectively.

Investors should also note any recent changes to analyst estimates for Arista Networks. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% higher. Arista Networks is currently a Zacks Rank #2 (Buy).

Digging into valuation, Arista Networks currently has a Forward P/E ratio of 27.24. For comparison, its industry has an average Forward P/E of 18.55, which means Arista Networks is trading at a premium to the group.

We can also see that ANET currently has a PEG ratio of 1.81. 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 2.35 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 109, which puts it in the top 44% 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.

To follow ANET in the coming trading sessions, be sure to utilize Zacks.com.


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